1

1

E-mail Article

Printer Friendly

Share Article

2013 more realistic for Gulf monetary union - analysts

A new 2013 deadline for the GCC common currency was more realistic than the previous planned date of 2010, according to a research note by Standard Chartered Bank on Monday.

But the bank repeated calls for the single currency to be allowed greater flexibility by tracking a basket of currencies rather the US dollar, as proposed.
Bahrain, Kuwait, Qatar and Saudi Arabia took a major step towards a pared-down single currency union on Sunday when the four GCC members signed a pact to create a joint monetary council.

An official from the GCC told Saudi Arabia’s Al Hayat newspaper that the new deadline for the common currency was likely to be 2013.

The 2010 deadline was “initially unattainable because of the lack of supra national institutions,” said Standard Chartered.

The four GCC members are pushing ahead with the monetary union despite the pulling out last month of the UAE, a major regional financial and commercial hub, in protest at a decision to base the joint central bank in Riyadh.

Oman announced in 2007 that it wanted to keep an independent monetary policy.

“Even if the institutions are created, the GCC monetary union will exclude the second largest and most diversified economy in the GCC.,” said the research note.

No Comments