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28. The Dubai currency is the Dirham (Dh) which is pegged to the dollar at Dh3.67 = $1. Savers from countries hit by the Arab
28. The Dubai currency is the Dirham (Dh) which is pegged to the dollar at Dh3.67 = $1. Savers from countries hit by the Arab Spring uprisings have moved their money to Dubai; from 2011 to early 2013 about Dh30 billion flowed into the UAE. Additionally, Russians have been looking for another location to invest as Cyprus has blocked capital outflows and it is forecasted that Russian money will now flow to Dubai. These capital inflows put pressure on the Dirham to ___. appreciate not change depreciate 29. To maintain the dollar peg, the UAE Central Banker should ___ which will cause inflation to ___. Buy Dirham on the foreign exchange market, increase Buy Dirham on the foreign exchange market, decrease Nothing, increase Nothing, decrease Sell Dirham on the on the foreign exchange market, increase Sell Dirham on the on the foreign exchange market, decrease 30. To combat the above the UAE Central Banker could do ___. Open Market Sales Open Market Purchases
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