DUBAI, Feb 4: The United Arab Emirates is likely to revalue its currency against the flagging dollar in a bid to bring down inflation and meet criteria for a single Gulf currency, an industry report said on Monday.

It is most likely that the UAE central bank will revalue the dirham against the US dollar in line with other GCC currencies, the Dubai Chamber of Commerce and Industry (DCCI) said.

This will help to some extent in alleviating inflationary pressures whilst retaining adherence to the dollar peg stipulated as an integral part of the convergence criteria necessary for a (Gulf) MU (monetary union) in 2010, it said in the report received by AFP.

The dollar is worth 3.67 dirhams, the rate used for the past decade.

Oil-rich Gulf Cooperation Council (GCC) member states Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE have set 2010 as the target date for adopting a monetary union and single currency.

Oman, the sixth GCC member, has said it will not join, at least at the initial stage.—AFP