The epic oil price collapse is throwing the decades old oil currency pegs of the Gulf Cooperation Council (GCC) back in the spotlight. Whilst GCC currency pegs have passed the test of time, they are under intense pressure in forward markets, and facing their sternest test in many years.

Ehsan Khoman, Head of MENA Research and Strategy, believes that while the balance sheets of the GCC countries have deteriorated in recent years, with public debt higher and foreign reserves lower, oil prices will need to remain protractedly weak before pegs become unsustainable.

Click below to listen to Ehsan's analysis.

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Download: Are Gulf US Dollar Currency Pegs Sustainable? The Global Markets FX Week Ahead Podcast (MP3)

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