September 19, 2007 – Back on March 3, 2007, the following was reported:
“The states would only change the dollar peg simultaneously, U.A.E. Central Bank Governor Sultan Bin Nasser al-Suwaidi told reporters today. The six countries form the Gulf Cooperation Council and their central bank officials meet next in April. The other countries are Bahrain, Qatar, Oman and Kuwait. “‘We will not act unilaterally,’ al-Suwaidi said in Dubai, U.A.E.”
Not even three weeks later after this coalition of Middle Eastern countries announced their commitment to the dollar, as we reported here on our blog, Kuwait defied this pledge and unpegged its currency from the dollar. Kuwait inferred that pegging its currency to the weak dollar was causing unnecessary inflation. Now, this week, speculation runs rampant that Saudi Arabia is to follow in Kuwait’s footsteps as it failed to take action on the U.S. Fed’s interest rate cut this past September 18th. The cracks keep coming.
[tag] dollar crisis[/tag]
