Exchange Rate Policy and Mubarak Al Mansouri

Mubarak Al Mansouri: The policy of the fixed peg of the dirham against the U.S. dollar will remain in place as economic indicators strongly support its continuation, state-run WAM reported, citing central bank governor Mubarak Al Mansouri. This exchange rate policy has contributed to maintaining economic stability and bolstering investors confidence over the long period it has been in effect, according to Business Week. Twelve-month-dirham forwards jumped to 3.6750 a dollar at the end of last week from 3.6720 on Nov. 21. That was the biggest weekly move in percentage terms since March 2011 and The United Arab Emirates, the third-biggest oil producer, ruled out changing its currencys peg to the U.S. dollar after a government advisory body called for a review. The U.A.E., the second-biggest Arab economy and home to one of the worlds biggest sovereign wealth funds, has kept its currency at a rate of about 3.67 dirhams to the dollar. Ali Al Nuaimi, a member of the Federal National Council, said last week the central bank should conduct regular reviews to weigh the benefit of the dollar peg. (news.financializer.com). As reported in the news.