The debate over whether the GCC countries should keep their peg to the US dollar has rattled on for many years now but it has taken on new urgency since mid-2014 in light of the sustained oil price slump and resurgent dollar.
According to international ratings agency Moody’s, the fall in the oil price in 2014 led to an aggregate current account deficit of -1.8% of GDP in the GCC through 2016, compared to an average surplus of close to 18% during the 2005-14 period. (CONTINUED - 2396 WORDS)
