Baahrain’s central bank may not be able to maintain the dollar peg. REUTERS/Hamad I Mohammed
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Bahrain has asked Gulf Arab allies for financial assistance as it seeks to replenish its foreign-exchange reserves and avert a currency devaluation that could reverberate across the region, people with knowledge of the talks said.Bahrain, a close Saudi ally, has been more vulnerable to slumping oil prices and regional political instability than richer Gulf Cooperation Council states. Bahrain is also a member of a Saudi-led coalition boycotting neighboring Qatar.Bahrain didn't cite that risk in its prospectus in 2013 .Bahrain's $1.5 billion Eurobonds due 2022 fell.While Brent crude is trading at the highest level in more than two years, it's still almost $40 below Bahrain's breakeven price.
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