KUWAIT TIMES: KUWAIT: A Kuwait parliament committee urged the government to allow the dinar currency to reflect the real value of the US dollar, which is at record lows against the euro, state news agency KUNA reported yesterday. "On the foreign exchange market the government is (asked) to review the exchange rate of the US dollar in the light of the actual prices on the market...," KUNA quoted budget committee recommendations as saying.
Kuwait abandoned its peg to the dollar in May, allowing the currency of the world's seventh largest oil exporter to appreciate 0.37 percent. The central bank said at the time it wanted to contain the impact of the dollar's slide on imports, which were driving up inflation. Analysts including those at Deutsche Bank and Standard Chartered expect Kuwait to move again this year especially if the dollar's slide continues.
The dollar slipped for a second session yesterday, hitting a fresh low against the euro, a 26-year low against sterling and a one-month trough against the yen. The parliamentary committee made the comments as part of a package of recommendations which parliament adopted as it approved the 2007/08 state budget. Standard Chartered said in June Kuwait was likely to let its dinar rise a further 0.35 percent against the dollar in 2007. Dinar revaluation urged (more)
Mark Alexander
