Gulf reserves set to top $2 trillion

If global oil prices remain high, foreign exchange reserves in the six Gulf Cooperation Council (GCC) countries will exceed $2 trillion by the end of this year.

This is the finding of new research by Institute of International Finance (IIF), a global trade body for the banking industry. The IIF also said currency pegs in five of the six member states are aggravating inflation.

The institute's research estimates that high oil prices could fuel a current account surplus of $250 billion in 2008