Analysis: Capital flight threatens Bahrain, FX peg safe for now

Though it looks likely to avoid a full-blown currency crisis for now, capital flight from Bahrain is starting to pressure its currency and threaten its position as a Gulf financial center.
The central bank's tight control over the foreign exchange market, and the possibility of other Gulf countries providing financial support to prevent market turmoil from spreading, mean Bahrain is unlikely for the foreseeable future to have to abandon the dinar's peg against the U.S. dollar.

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