Yesterday UAE central bank governor made daring statement that crude would see the levels of USD 60-80/bl as against prevailing USD 118/bl. He also praised himself for keeping the dollar peg. I have voiced my concern earlier also on lack of capabilities to have indepedent economic policies in this places. I wonder what made them believe that crude would fall to half of its present price, only thing can be there is lot of short selling on exchanges.
While we look at cost of dollar peg for currencies in middle east; the average person can well guide you that the prices for all consumable items in general have doubled at minimum in last one year. If currency would have been fairly priced based on countries economy then this situation would have been avoided largely.
Can we look forward to more responsible statements from people in position?