I am surprised to read today’s Gulf News article about “No plan to review dollar peg – central bank chief”. The central bank governor has been one of the responsible authorities making stand shifting statements continuously over last 3-4 months about the issue of revaluation of AED to USD; and this is very sad.
On the top Gulf News had published news about central bank forming review committee with possible report by end of 2008 only a week before and today the news is just reverse of that. It means either Gulf News publishes news without verifying the authenticity or central bank has been giving false information to media to keep the issue hanging in air.
As an expat from Asia living in Gulf, I wonder why the central banks have been shying away from issues storming them in face; viz. inflation vs currency devaluation in real terms. Excepting Kuwait all other GCC countries have failed miserably to address the issue of unabated rise of living costs in these oil revenue rich states…atleast by making imports bit easier through flexible exchange rates (this is important as living costs are comprised of largely imported food stuffs from Asia or Europe apart from deterrent housing costs).