Financial Times FT.com

Qatar considers dropping dollar peg

By Simeon Kerr in Dubai

Published: January 30 2008 19:59 | Last updated: January 30 2008 19:59

Qatar is reviewing its currency policy and could revalue or drop the dollar peg as the booming Gulf state struggles to tame inflation while the US reduces interest rates to head off a recession.

Qatari officials on Wednesday said the gas-rich emir­ate was considering revaluing its currency or linking it to a trade-weighted basket of currencies as well as other policy proposals aimed at cooling rampant inflation of up to 15 per cent.

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