We would like to invite you to continue a survey you have started. ...

Do you trust your insurer ?

Strongly agree
Strongly disagree
Insurance provides peace of mind
Insurance is purchased only when compulsory
Terms and Conditions (small print) are clear and easily accessible
Insurance jargon (language) stands in the way of fully understanding each policy
Insurance companies try their best to uphold the details of the policy without cutting corners
Reducing risk, cutting costs and profits are more important to an insurance company than the customer
Insurance companies in the region are as professional as in other more developed markets
Age group
Do you feel your insurance provider works in your interest?
Have you had a rejected claim that you feel was not justified?
Do you trust your insurance provider?
Our Network

Register for our free newsletter

Latest News

To de-peg or not to de-peg. That is the question

To de-peg or not to de-peg. That is the question

As the drop in the value of the US dollar this week gets the GCC Secretary General’s attention, Kipp dwells into the arguments of those who would de-peg the GCC’s currencies.


November 8, 2010 3:45 by

There are some debates in the Gulf that just don’t ever seem to reach a conclusion: Will there be a hike in oil prices or not? Will the private sector get the same number of Eid holidays as the public sector? And, of course, should the GCC de-peg its currencies from the US dollar? In a see-saw ride through recent turbulent economic times, every time the reports of a dollar slip hits the news stands, so too does the age-old question: Is it time for the GCC to follow the lead of Kuwait, to de-peg from the US dollar and instead peg its currencies to a basket of world currencies?

This week was no different. But as news emerges again of the debate, the reality on the ground is that the GCC has pegged its currency to the US dollar for the past 30 years and doesn’t look likely to change its policy. Still, Kipp puts the naysayers under the microscope, as we look at some of the arguments for de-pegging.

Avoiding an increase in inflation

American Nobel laureate Paul Krugman is one of the more vocal proponents of the de-pegging debate. Speaking to Gulf News in 2009, Krugman said the GCC has much to benefit from de-pegging its currency from the dollar, especially as he expects an upward trend in oil prices, in addition to a further decline in the dollar which (if pegging is still there) could increase inflation across the GCC.

Pages: 1 2


Tags: , , , , ,


  1. Anupama V. Chand on November 9, 2010 10:41 am

    Good article. Well Written. Just one grouse. Should the slug not read – “…Kipp delves into the argument” and not “….Kipp dwells into the arguments…” – you just cannot dwell into arguments now, can you?

  2. Andrew on November 10, 2010 8:03 am

    Depegging would require the UAE Central Bank think for themselves.


Leave a Comment