No intention to de-peg from dollar: UAE official

The GCC countries that have traditionally used US dollar peg as an external anchor for monetary policy are concerned that given rising inflation and their differing economic cycles from the United States whether the dollar peg remains the best policy.

The Middle East bloc members that allow unrestricted,intra-regional mobility of goods,labor,and capital,and have established a common market since 2008,seek a single monetary union much like the Euro in the European Union.

Referring to the financial and banking indicators in the UAE,Al Suwaidi said that the data issued in October indicated growth of the banking sector and the improvement in liquidity situation.

He said the UAE economy was expected to grow by 4 percent in the coming two years due to satisfactory performance achieved in 2009. This,he said,indicates a return of confidence in the banking sector and in the country’s economy,especially following the Dubai World debt restructuring.

According to Al Suwaidi,there is confidence in the economy of UAE,which along with a decline in inflation rate is witnessing positive developments.