Gulf states will not act alone in foreign exchange reform: UAE

Gulf Arab oil producers will not act separately in reforming dollar-pegged currency policy as they prepare for monetary union, United Arab Emirates Central Bank Governor Sultan Nasser al-Suweidi said on Sunday.
"This is a common monetary union and this is done together and no one will do it separately," Suweidi told reporters in response to a question about whether Gulf states could act unilaterally to reform currency policy. Saudi Arabia, the UAE, Qatar, Bahrain and Kuwait plan to set up a single currency as early as 2010.
Kuwait severed its link to the ailing U.S. dollar more than a year ago partly to offset the impact of the dollar's decline on inflation, which is soaring across the region.