Identifier
Created
Classification
Origin
07MANAMA485
2007-05-30 09:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Manama
Cable title:
BAHRAIN CENTRAL BANK GOVERNOR REAFFIRMS COMMITMENT
how-toVZCZCXRO9705 RR RUEHDE RUEHDIR DE RUEHMK #0485 1500955 ZNR UUUUU ZZH R 300955Z MAY 07 FM AMEMBASSY MANAMA TO RUEHC/SECSTATE WASHDC 6872 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS MANAMA 000485
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EFIN ECON ETRD PREL BA ECTRD
SUBJECT: BAHRAIN CENTRAL BANK GOVERNOR REAFFIRMS COMMITMENT
TO DOLLAR PEG
REF: A. KUWAIT 806
B. MUSCAT 522
UNCLAS MANAMA 000485
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EFIN ECON ETRD PREL BA ECTRD
SUBJECT: BAHRAIN CENTRAL BANK GOVERNOR REAFFIRMS COMMITMENT
TO DOLLAR PEG
REF: A. KUWAIT 806
B. MUSCAT 522
1. (SBU) Bahrain Central Bank governor Rashid Al-Maraj, in a
May 30 meeting with a visiting U.S.-Bahrain Business Council
delegation, strongly reaffirmed Bahrain's commitment to
maintain the Bahrain dinar peg to the dollar. While
acknowledging that the weakness of the dollar can have a
negative impact on the economy (more expensive imports),he
said that on balance the government believes that the link to
the dollar has been and will continue to be beneficial to
Bahrain, sending a positive signal to the business community
of stability and transparency in the financial sector.
"Going forward," he stated, "we will maintain this peg."
2. (SBU) Asked how Kuwait's decision to drop the dollar peg
would affect moves toward a unified GCC currency by 2010,
Al-Maraj stated that it is inevitable that the GCC countries
will continue to move towards a more harmonized financial
policy, but the process is proving to be more complex than
originally realized. It will take time, he stated. Among
the obstacles that he said were making monetary union more
difficult were vast differences in per capita income among
member states and different levels of subsidies and benefits
within the GCC.
********************************************* ********
Visit Embassy Manama's Classified Website:
http://www.state.sgov.gov/p/nea/manama/
********************************************* ********
MONROE
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EFIN ECON ETRD PREL BA ECTRD
SUBJECT: BAHRAIN CENTRAL BANK GOVERNOR REAFFIRMS COMMITMENT
TO DOLLAR PEG
REF: A. KUWAIT 806
B. MUSCAT 522
1. (SBU) Bahrain Central Bank governor Rashid Al-Maraj, in a
May 30 meeting with a visiting U.S.-Bahrain Business Council
delegation, strongly reaffirmed Bahrain's commitment to
maintain the Bahrain dinar peg to the dollar. While
acknowledging that the weakness of the dollar can have a
negative impact on the economy (more expensive imports),he
said that on balance the government believes that the link to
the dollar has been and will continue to be beneficial to
Bahrain, sending a positive signal to the business community
of stability and transparency in the financial sector.
"Going forward," he stated, "we will maintain this peg."
2. (SBU) Asked how Kuwait's decision to drop the dollar peg
would affect moves toward a unified GCC currency by 2010,
Al-Maraj stated that it is inevitable that the GCC countries
will continue to move towards a more harmonized financial
policy, but the process is proving to be more complex than
originally realized. It will take time, he stated. Among
the obstacles that he said were making monetary union more
difficult were vast differences in per capita income among
member states and different levels of subsidies and benefits
within the GCC.
********************************************* ********
Visit Embassy Manama's Classified Website:
http://www.state.sgov.gov/p/nea/manama/
********************************************* ********
MONROE