The United Arab Emirates has no plans to drop or revalue its currency peg to the dollar, central bank governer Sultan Nasser al-Suweidi said on Monday. His comments follow pressure from various quarters to drop the dollar peg to contain the soaring inflation in the country.

"There will be no revaulation, no dropping the dollar peg," he told reporters in Abu Dhabi, adding that he was confident monetary union could still go ahead in Gulf Arab countries on target in 2010 despite widespread doubts.

"I am confident we can achieve monetary union by 2010," he said. Suweidi also said there was no relation between surging inflation in Gulf countries and the need to keep the dollar peg. - Reuters