Bahrain to Get Support From Gulf Allies as Risk Climbs

The video discusses Bahrain's economic challenges, focusing on its currency peg and financial market reactions. Investors are concerned about Bahrain's ability to maintain its currency peg and repay debts due to insufficient reforms and cash flow issues. The market has reacted with rising credit default swaps and bond market dislocation. There is uncertainty about potential aid for Bahrain, and the importance of defending the currency peg is emphasized to prevent broader regional financial instability.

In what ways have the recent market conditions impacted Bahrain's credit ratings?

What measures are suggested to defend Bahrain's currency peg?