UAE firm on dollar peg

(RABIH MOGHRABI)    

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has stressed the UAE will maintain the dirham’s peg to the US dollar for the moment.

Speaking to the media on board the special plane that took Sheikh Mohammed from Beijing to Shanghai during his official visit to China, Sheikh Mohammed said de-pegging is not an easy thing, and it involves several issues that should be studied before making a decision in this respect.

“So far we have not made any decision to de-peg. We will continue with the peg, and there is no change in this respect. However, specialised committees are currently studying the positive and negative aspects as well as the pros and cons of de-pegging,” he said.

“These committees will forward their report to the Cabinet, which will take a decision based on full awareness that takes into account all aspects of the issue.”

Sheikh Mohammed said the UAE would not be affected by the credit crunch in the United States. He said the world’s economies will undoubtedly be affected by what is happening in the US since it has the largest economy of the world.

But the degree of effect will vary from one country to another, “and we in the UAE have not been affected because we were ready for it”.

Sheikh Mohammed said his visit to China, which opens up huge potential in various domains, is necessary and useful since Beijing is now a new power in world economy.

“And its importance lies in the fact that it is a power with a deep-rooted history. Hence our interest in opening new horizons of relations, to reach new levels of partnership between the two countries.”

Meanwhile, a senior official of the delegation accompanying Sheikh Mohammed told Emirates Business the Chinese side showed strong interest in developing co-operation with the UAE.