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Kuwait ends currency peg to US dollar
DUBAI — Ending months of speculation, Kuwait yesterday abandoned its four-year old currency peg to the US dollar in a move that is expected to trigger renewed calls from monetary experts in the UAE and other GCC countries — reeling under imported inflation resulting from a tumbling greenback — to follow suit.
The Kuwaiti Central Bank's move to switch the dinar exchange rate mechanism to a basket of currencies, although aimed at softening its spiralling domestic inflation, is feared to further delay the GCC monetary union which is already poised to miss the 2010 deadline, analysts said.
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