Saudi Arabia not to drop dollar peg

03 Dec, 2007

Saudi Arabia ruled out severing the riyal's peg to the dollar before Gulf Arab rulers meet this week under intense market scrutiny over a United Arab Emirates call for regional currency reform.
"We will not drop it. That's it," Finance Minister Ibrahim al-Assaf told reporters after a meeting of Gulf finance ministers. The rulers of six oil producers preparing for monetary union meet on Monday and Tuesday.
UAE Central Bank governor Sultan Nasser al-Suweidi said last month he was under intense social and economic pressure to drop the peg to the tumbling dollar and track a currency basket to contain inflation.

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