The United Arab Emirates will not participate in Gulf Monetary Union.

Therefore, the UAE dirham will remain pegged to the US of A dollar,
UAE Central Bank Governor, Sultan Al-Suwaidi, said on Wednesday. (!1)

Secretary of the US of A treasury, Timothy F. Geithner said however on Tuesday at the Jeddah Chamber of Commerce that
he thinks the world has yet to fully appreciate the scale of ambition [...] we are seeing in the Kingdom [of Saudi Arabia] and the Gulf region to lay the foundation for future growth.

It would appear that by saying that, Geithner was actually
praising the ambition of the Kingdom of Saudi Arabia
to break free from the dollar peg
in order to
solve the huge bad debt problem at the Saudi business groups Saad and Algosaibi. (2)

The whole GMU will break free from the dollar peg.

The UAE and Oman will watch from outside of the GMU …

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Al Suwaidi reiterates UAE position on dirham peg to dollar
By Ahmed A. Namatalla, Staff Reporter
Published: July 15, 2009, 22:41
http://www.gulfnews.com/business/Banking_and_Finance/10331945.html
SNIP
Abu Dhabi: Central Bank Governor Sultain Al Suwaidi reiterated his confidence in the dollar for the second time in less than three weeks.
In comments to Bloomberg after meeting US Treasury Secretary Timothy Geithner, Al Suwaidi said the UAE has no intention of depegging its currency from the dollar.
“It’s very important to give realistic committal messages to the international markets,” the governor told the news agency. “I would say [Geithner has] done that.”

(2)
Geithner: Save Saad & Algosaibi by breaking free from dollar peg
Posted by Ivo Cerckel on July 15th, 2009
http://bphouse.com/honest_money/2009/07/15/geithner-save-saad-algosaibi-from-dollar-peg/
[If the link does not work, try to copy it and paste in your browser]