Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-Bahrain concerned about FX volatility, food costs

Published 10/31/2010, 06:09 AM
Updated 10/31/2010, 06:12 AM
NG
-

* Inflation not a problem in Bahrain - c.bank gov

* Qatar c.bank sees 16 percent GDP growth in 2010

(Adds Bahrain, Qatar central bank comments, background)

KUWAIT, Oct 31 (Reuters) - Bahrain's central bank is concerned about volatility in global currency markets as well as rising food costs, its governor said on Sunday.

Meanwhile Qatar's economy will expand strongly this year, the head of its central bank said.

"I am concerned on the global side, there is a lot of uncertainty. There is a great deal of volatility in the market which caused certain anxiety within markets," Bahrain Central Bank Governor Rasheed al-Maraj told Reuters.

"The fluctuation in currencies from time to time is a reflection of the global economy and we have to recognise and take into consideration these movements, but it will not influence our decisions in the short term," he said.

The uncertainty surrounding a fresh round of U.S. monetary easing weighed on the dollar on Friday, pushing it just shy of a 15-year low against the Japanese yen. The island kingdom pegs its dinar currency to the dollar -- as do most of its fellow Gulf Arab crude producers -- which keeps its monetary policy closely aligned to that of the United States.

Maraj also said an increase in global food prices was another source of worry.

"I do not think inflation is a problem for us. The increase in food prices globally is a concern as it transpires into higher prices on the local market," he said on the sidelines of a financial conference in Kuwait.

Inflation in the small non-OPEC oil producer slowed to a six-month low of 2.0 percent on an annual basis in September, but rose 0.7 percent month-on-month, the fastest rate in a year as food prices soared.

Separately, Qatar's central bank expects the economy of the world's largest liquefied natural gas exporter to perform strongly this year, its governor told the same conference.

"According to our expectations ... growth in GDP this year is going to be 16 percent," Sheikh Abdullah bin Saud al-Thani said.

Analysts polled by Reuters expected Qatar's gross domestic product to jump 15.5 percent this year, after slowing to 8.7 percent in 2009, due to a massive expansion of gas facilities and government infrastructure spending. (Reporting by Eman Goma; Writing by Martin Dokoupil; Editing by Michael Shields)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.