Reuters: Paulson on Mideast USD pegs
Posted by Sada Mosler on June 1st, 2008
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Maybe the weak USD is causing him to have second thoughts on preventing CBs and monetary authorities from accumulating USDs to keep their currencies low and support their exporters?
Ending dollar peg won’t solve Gulf inflation: Paulson
by David Lawder
(Reuters) U.S. Treasury Secretary Henry Paulson said on Saturday the dollar peg for currencies in the Middle East had served those countries well and any changes to the peg would be a sovereign matter.
Paulson, on a visit to Saudi Arabia, Qatar and the United Arab Emirates, also told a news conference the current level of oil prices were a burden on economies and consumers around the world.
Asked about the dollar peg, Paulson said:
“That is a sovereign decision … The dollar peg, I think, has served this country (Saudi Arabia) and this region well.”
Paulson earlier met Saudi Finance Minister Ibrahim al-Assaf to discuss a range of issues including the oil market, the U.S. and Saudi economies and issues related to foreign exchange.
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