Saudi Arabia will not revalue its currency, Foreign Minister  Prince Saud Al-Faisal said on Tuesday.

He was responding to a question about whether Gulf Arab finance ministers would meet to discuss revaluation.

Gulf finance ministers meet regularly to discuss "all aspects" of interest, but "there was no decision" to revalue their dollar-pegged currencies, Prince Saud told a news conference.

Asked whether Saudi Arabia would revalue its riyal, Prince Saud said "No".

Meanwhile, Bahrain will move towards tracking the dinar against a currency basket rather the US dollar, without changing the exchange rate, Al-Wasat newspaper quoted the finance minister as telling the advisory Shura council.

The finance ministry declined to comment on the report which contained the latest in a stream of contradictory remarks from policymakers that have kept markets guessing. Other papers carried some of the remarks, including al-Ayyam, which usually follows the official line.

Both newspapers said there was no change in currency policy.

The rulers of Bahrain, Saudi Arabia and other Gulf oil producers preparing for monetary union as early as 2010 decided against dropping their pegs to the dollar at a summit this month.

Bahrain would move from the dollar peg to a basket without letting the dinar appreciate, Finance Minister Sheikh Ahmed bin Mohammad al-Khalifa said, according to Wasat.

"In regards to delinking the peg and the trading of currencies, Bahrain will move towards a basket of currencies, and in the end nothing will change," the paper quoted him as saying at a council session on Monday.

Finance Ministry Media Adviser Ahmed Osman Taher declined to comment on the newspaper reports.

Al-Ayyam newspaper also carried the some of the remarks on Tuesday without a full quotation.

"The minister of finance ... confirmed that Bahrain will not change its currency policy to shut the door in the face of currency speculation, indicating that delinking the dinar from the U.S. dollar will not change the exchange rate that has remained stable since 1980," Al-Ayyam reported.

Although some central banks are cutting interest rates to deter market bets of an appreciation of their currencies, remarks from other officials are keeping speculation alive.

Gulf rulers agreed to keep any currency reform talks secret, to avoid stirring speculation, Qatar's prime minister said after a summit this month. - Reuters