admon

http://www.gulfnews.com/business/Economy/10205472.html

So says a 'leading industrialist'.
Looks like revaluation could be tomorrow if they are that adamant that it isn't going to happen.
Buy dirhams!!! Sell dollars!!!

admon

.. the industrialist then left the interview to immediately exchange several billion dollars into dirhams.

lionheart

This is a very old story which certainly doesn't get any more interesting with the passage of time. Virtually every few months, somebody says it will happen and it never does...much like women being allowed to drive in Saudi Arabia.

W10

I think the fact Shk Mo said it was here to stay might be more of a solid indication

IndieG

You're right. And keeping the interest rates negative/abnormally low is driving both inflation AND the demand for real estate in Dubai. I see people buying property left-right-and-centre

W10

I thought it was far more political than that.

The US has spent a lot of time leaning on governments in the Gulf to keep the peg (and even to stop thinking about revaluing) because of the implications it would have for their economy

Norm_uk

The peg suits the oil producers...they know exactly what they are getting in their pockets with every rise in oil (and oil will keep rising this year-I would be surprised if it doesn't pass $125). The governments here are getting richer and richer and will leave the peg alone as long as they think the economy can handle it.

Besides, no matter who gets elected the dollar will increase again once Bush is out...

N.