Trump’s policies could pressure Gulf states with dollar peg: Moody’s
US President-elect Donald Trump’s proposed economic policies could put GCC economies with currencies pegged to the US dollar under pressure, Mark Zandi, chief economist at Moody’s Analytics, told CNBC Arabia.
The US Federal Reserve will raise interest rates at a higher pace, which will make it more difficult for countries like the Gulf states to manage the currency peg. He expected their economies to face pressure in the coming months.
Governor of the Saudi Monetary Agency (SAMA) Ahmed Al Kholifey, said on Monday that there was no intention to abandon the US dollar peg, or to change the SAR-USD interest rate.
Saudi Arabia has linked the dollar to the riyal since 1986 while the United Arab Emirates started pegging its currency to the dollar in 1997.