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