UAE central bank ‘studies revaluation’

Dubai: The UAE’s central bank has launched a study into a revaluation of the dirham, the Middle East Economic Digest (MEED) reported late on Friday, citing a bank official. « There is a study group that has been looking at the effects a revaluation would have for several months now as part of the planning for the long-term strategic future of the bank, » MEED quoted the official as saying. The group is expected to report the findings at the end of 2008, according to the magazine. The UAE, like other Gulf Arab countries, which peg their currencies to the dollar, is struggling to curb soaring inflation, driven by a five-fold increase in oil prices during the last six years and lower interest rates. Source: Reuters