Thursday, March 15, 2018

Middle East Eye: Rising US interest rates may damage Gulf economies

By SIMON CONSTABLE

Some oil-rich Gulf States have barely recovered from the oil market slump, yet now they face a new potential threat to their economies. Rising US interest rates may crimp growth or worse, send some countries back into recessions from which they just emerged.
It is all happening because the countries in question have an unusual arrangement for their currencies: the value of their money is fixed against the US dollar. The situation has some significant benefits but also some downsides, such as right now when the cost of borrowing money is rising. Read more here.

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