Bahrain plans monthly allowance for families


Bahrain plans to give low-income families a 50 dinar ($132.7) monthly allowance as part of a programme to help citizens cope with rising prices, newspapers including Bahrain Tribune, reported on Monday.

Bahrain said in January it would allocate 40 million dinars for social allowance grants and to subsidise basic foods to combat the effects of inflation.

Families earning 1,500 dinars or less per month will receive a 50 dinar allowance every month for one year under the programme, which is still awaiting parliament approval, the Bahrain Tribune said after a cabinet meeting.

Like most of its neighbours in the world's top oil-exporting region, Bahrain pegs its currency to the dollar, forcing it to track U.S. monetary policy at a time when the Federal Reserve is slashing interest rates to ward off recession.

By contrast, Gulf economies are surging on a five-fold rise in oil prices in the last six years that is helping fuel inflation. (Reuters)