{"id":27533,"date":"2017-11-01T19:11:48","date_gmt":"2017-11-02T00:11:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27533"},"modified":"2017-11-01T19:11:48","modified_gmt":"2017-11-02T00:11:48","slug":"another-gulf-crisis-dinar-devaluation-looms-as-bahrain-begs-neighbors-for-bailout","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27533","title":{"rendered":"Another Gulf Crisis: Dinar Devaluation Looms As Bahrain Begs Neighbors For Bailout"},"content":{"rendered":"

Another Gulf Crisis: Dinar Devaluation Looms As Bahrain Begs Neighbors For Bailout<\/a>\u00a0<\/span><\/h3>\n
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Despite the recent rise in oil prices, all is not well among the allies in the Gulf. <\/strong>The ‘pegged-to-the-dollar’ Bharaini Dinar has tumbled in the last few days as Bloomberg reports<\/a> the nation has asked Gulf Arab allies for financial assistance as it seeks to replenish its foreign-exchange reserves and avert a currency devaluation<\/strong> – which could spread contagiously through MidEast markets.<\/p>\n

Bloomber notes <\/a>that the slump in oil prices has battered the six-member Gulf Cooperation Council, at times raising questions over whether a dollar peg seen as a bedrock for economic stability for more than three decades was sustainable. And while bets against the region\u2019s currencies have subsided this year, a devaluation of a GCC member would risk shifting the attention to others. Gulf central banks, including Bahrain\u2019s, have repeatedly brushed aside talk of abandoning their exchange-rate regimes.<\/p>\n

But Bahrain has seen its central bank’s foreign reserves collapse over 75% from 2014 highs<\/strong> as they have defended the currency peg.<\/p>\n

<\/a><\/p>\n<\/div>\n

And so, as Bloomberg reports,<\/a> according to people with knowledge of the talks, Bahrain has asked for a bailout.<\/strong><\/p>\n

The request was made to Saudi Arabia and the United Arab Emirates<\/strong>, two of the people said.<\/p>\n

A third person said Kuwait was also asked.<\/strong><\/p>\n

The countries responded by requesting the island kingdom do more to bring its finances under control in return for the money,<\/strong> the people said on condition of anonymity because the discussions were private.<\/p>\n

The talks are at an early stage, <\/strong>one person said.<\/p><\/blockquote>\n

It appears the FX markets are not convinced as the Dinar tumbled…<\/p>\n

<\/a><\/p>\n

The IMF estimates that Bahrain needs oil prices at $99 a barrel to balance its budget this year,<\/strong> compared with $73.1 a barrel for Saudi Arabia, which is overhauling its economy.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Another Gulf Crisis: Dinar Devaluation Looms As Bahrain Begs Neighbors For Bailout\u00a0 Despite the recent rise in oil prices, all is not well among the allies in the Gulf. The ‘pegged-to-the-dollar’ Bharaini Dinar has tumbled in the last few days as Bloomberg reports the nation has asked Gulf Arab allies for financial assistance as it […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2225,16825,16826,4485,522,592],"class_list":["post-27533","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bahrain","tag-bahraini-dinar","tag-foreign-reserves","tag-gulf-cooperation-council","tag-middle-east","tag-oil-price"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27533"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27533\/revisions"}],"predecessor-version":[{"id":27534,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27533\/revisions\/27534"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}