US ‘urges UAE to retain peg’

Dubai: The UAE, conceding to US pressure and a desire to act in concert with Gulf allies, will keep the dirham pegged to the dollar, a UAE Central Bank official said. US embassy officials last week told UAE Central Bank Governor Sultan Bin Nasser Al Suwaidi of their concern about reports that the country may drop the peg, the official said yesterday, speaking on condition of anonymity. Political leaders have stopped the bank from developing any plans to move toward another currency regime, the official said. US Embassy spokesman Atalah Hoshan in Abu Dhabi wasn’t immediately available for comment. Source: Bloomberg