UAE rules out currency revaluation ahead of other GCC countries

The United Arab Emirates (UAE) has ruled out the possibility of revaluing its currency ahead of other Gulf Cooperation Council (GCC) countries, local newspaper Gulf News reported on Sunday.

The continued decline of U.S. dollar, which has fallen 10 percent against euro in 2006, has weakened GCC countries' currencies pegged to it, the report said.

GCC countries will discuss whether to revalue their currencies at the upcoming meeting of central bank governors to be held in April, the UAE Central Bank Governor Sultan Nasser Al Suwaidi said.

"We will not act unilaterally, but if (the governors) come to the conclusion that we should go in this direction or that direction, we will go along," he said.

Al Suwaidi added that his country is waiting for the right time to raise its euro reserves. The UAE holds 3 percent of its reserves in euros, with the rest in dollars, and plans to raise its euro reserves to 10 percent.

GCC countries, which comprise Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the UAE, pegged their currencies to the dollar in 2003 under a plan to unite under a single currency by 2010.

Source: Xinhua