Revaluation urgently needed in the Gulf States « Peter J. Cooper’s Weblog

If even the US Treasury realizes that the status quo has to change then this ought to be a green light to GCC policymakers to find a face-saving compromise. It might be that the peg is kept until the planned currency union in 2010 but a coordinated series of revaluations is phased before then. That will not be an easy policy to pursue but then is it not better than the alternative?