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Middle East & North Africa - Finance

Gulf states urged to rethink dollar pegs

By James Drummond in Abu Dhabi

Published: July 6 2008 20:43 | Last updated: July 7 2008 18:38

Abu Dhabi has reignited speculation that the United Arab Emirates may break its fixed peg to the US dollar. The UAE is one of the world’s main holders of dollar-denominated assets.

In a report published at the weekend, the Abu Dhabi department of planning and economy floated the idea of tracking a basket of currencies in advance of formation of a currency union in the six-member Gulf Co-operation Council.

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