Oil-rich Gulf on edge as US Congressmen gasp to seal debt deal
17 Oct 2013 5:20 AM IST
The economic consequences for the Gulf Cooperation Council (GCC) countries could be dire if the US fails to seal a deal on the lifting of its government’s debt ceiling, economists in the Gulf region have warned.
The oil-rich GCC countries have massive investments in the US, the currencies of most of them are pegged to the dollar, and a debt crisis in the US would likely have a disastrous impact on the world oil market, The Peninsula newspaper reported.
‘A continuing debt ceiling crisis in the US would hit China hard, and this would have a cascading effect on the rising Asian economies,’ financial expert Abdullah Al Khater said.
The oil-rich GCC countries have massive investments in the US, the currencies of most of them are pegged to the dollar, and a debt crisis in the US would likely have a disastrous impact on the world oil market, The Peninsula newspaper reported.
‘A continuing debt ceiling crisis in the US would hit China hard, and this would have a cascading effect on the rising Asian economies,’ financial expert Abdullah Al Khater said.
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