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Death of the dollar

Death of the dollar

The sliding dollar has prompted the region’s governments to question if their currencies’ dollar peg is doing more harm than good (again).


November 16, 2009 9:32 by

“We reiterate our view that currency policy will remain focused on stability, as investment programs remain central to policy initiatives in the light of the global crisis. We do not expect to see inflation levels reaching the same levels in the short-term as housing supply in the region increases,” says a recent economic study by the bank.

Questions about the dollar’s fitness – as well as the competence of the man behind the US currency – persist. Going forward, indications of heightening inflation and instability will make de-pegging from the greenback a priority for Gulf countries.

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  1. gopalkt on November 21, 2009 11:18 am

    The dollar, depegged?
    No way, it’s too stable to be let go of
    Ups and downs, big ones even, yes – but the dollar is still the currency of the world

  2. KARL on December 3, 2009 12:11 pm

    The Dollar and American power and hegemony are both history except the americans don’t realise it yet.Just like the 20th century was the american century the 21st century will be the asian century: the rise in power of china,india and possibly even brazil on the back of their increasing economic power.It is also interesting that the most populous countries seem to be the prospering ones.Even in eastern europe for example;Poland which is far more populous than either czech or slovak republics or hungary is a much bigger economy than the others.Seems you need a certain minimum population to build critical economic mass.


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