Bahrain said to make progress as it seeks aid from gulf allies

Bahrain trying to avoid devaluation

Bahrain is in the midst of a financial squeeze and is in danger of a devaluation. You can see the battle over the past six-weeks to maintain the peg to the Bahraini dinar.

The risk is that a devaluation causes capital outflow in other areas in the region as the dominos fall. So Saudi Arabia, the UAE and Kuwait are discussing a multi-year program that would include spending cuts and measures to increase revenue, like a VAT. The report is from Bloomberg.