Oil Market: De-pegging or holding onto an overvalued exchange rate? – Danske Bank

FXStreet (Delhi) - Research Team at Danske Bank, suggests that many oil producing countries (and other exporters of non-fuel primary products) suffered from overvalued exchange rates before the oil price collapse.

Key Quotes

“In response to the oil price shock, several oil countries have abandoned their pegs to mitigate the impact on external and fiscal balances (Angola, Azerbaijan, Kazakhstan, Iraq and Russia).

Still many countries hold onto their dollar pegs despite a sharp worsening of their fiscal and current account balances (Iraq, Venezuela, Saudi Arabia, Bolivia, Kuwait, United Arab Emirates, Kuwait).”