Bahrain’s dinar sank to a 17-year low against the U.S. dollar on Tuesday as hedge funds dumped Bahraini bonds because of concern about the country’s rising public debt, regional bankers said.
“The Central Bank of Bahrain is committed to keeping its currency pegged to the U.S. dollar set at 0.37608 and has no plans to alter the Bahraini dinar’s value,” it said.
The brief statement added: “The CBB confirms maintaining the existing monetary policy, centered on a peg to the U.S. dollar.
Bankers in the region said they did not detect any concerted attack on the currency, but a plunge in Bahrain’s international bond prices in recent weeks had fueled jitters in foreign exchange trading and hedge funds were selling the dinar in the forwards market
Source Credit: Reuters