UAE rules out dirham revaluation in ‘foreseeable future’

Dubai: The UAE on Thursday ruled out any change to the dirham-dollar peg in the “foreseeable future,” saying the current foreign exchange policy has served the country well. “It is a very important stability anchor,” UAE Central Bank governor Sultan Nasser Al Suweidi said of the currency peg. He also said the goal of a GCC common currency may not be achieved in 2010 as planned. “We do not have to artificially manipulate our currencies to compensate for the loss of value as a result of natural fluctuations. You have to let the market flow normally, supply and demand will determine everything,” Al Suweidi told reporters when asked if the bank will revalue the dirham while keeping it pegged to the falling US currency. Source : Guilfnews