Sunday, May 20, 2007

UPDATE 1-Kuwait drops dollar peg, adopts currency basket

(Reuters) - KUWAIT, May 20 - Kuwait switched the dinar's
exchange rate mechanism to a basket of currencies on Sunday,
dropping a peg to the tumbling U.S. dollar that was adopted in
2003 and throwing into disarray plans for a single currency in
the Gulf Arab region.




Kuwait was still committed to the monetary union, the
central bank governor said in a statement, but the dollar's
slide over the past two years had forced it to break ranks with
fellow Gulf oil producers to contain inflation.


Read more at Reuters.com Economic News

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