Font Size

- Aa +

Tue 23 Feb 2016 01:57 PM

Font Size

- Aa +

Bahrain says committed to keeping currency peg

Central bank chief makes pledge after Bahraini dinar has come under pressure in foreign exchange forwards market

Bahrain says committed to keeping currency peg

Bahrain is committed to the peg of its dinar currency against the US dollar, central bank governor Rasheed Mohammed al-Maraj said on Tuesday.

"We will continue the peg," Maraj told an economic conference. He said the peg had helped Bahrain and that the kingdom was comfortable with it.

The dinar, pegged at 0.376 to the dollar, has come under pressure in the foreign exchange forwards market in the last several months as low oil prices damage Bahraini state finances.

One-year dollar/dinar forwards hit a high of 650 points in late January, their highest level since at least the year 2000, according to Thomson Reuters data. They have fluctuated just below that level since then.