qatargcc should not delay monetary union
Last Updated : GMT 06:32:30
Arab Today, arab today
Arab Today, arab today

Qatar : GCC should not delay monetary union

Arab Today, arab today

Arab Today, arab today Qatar : GCC should not delay monetary union

Doha - Arabstoday

Gulf Arab oil exporters should learn from the eurozone debt crisis but press on with their own monetary union project, a senior official from Qatar’s central bank said yesterday. “I think that the GCC (Gulf Co-operation Council) countries should benefit from the euro experience and continue with the GCC monetary union project without a delay,” Khalid Alkhater, Director of Research and Monetary Policy at the bank, said. “The monetary union is a strategic long-term project for these countries, not only economically, but it should be also politically,” he said in rare public comments by a Gulf central bank official. “...The costs of not establishing it could be very high for the GCC countries...in the future.” The creation of monetary union became the primary objective of the six GCC members in the early 1980s. Four of them - Qatar, Saudi Arabia, Kuwait and Bahrain - formed a joint monetary council and a forerunner to a Gulf central bank in March 2010. But the monetary council has since kept a low profile, and most observers believe any unification of the region’s currencies will not occur for at least five years. They cite the euro crisis and a lack of political will following the United Arab Emirates’ withdrawal from the project in 2009 among the main reasons. The sixth GCC state, Oman, pulled out in 2006. The absence of the UAE, seen as providing an economic counterbalance to Saudi Arabia, is an obstacle to further progress towards monetary union in the Gulf, where most countries peg their currencies to the dollar, analysts have said. Alkhater, who is not a member of the Gulf monetary council, said that the GCC states had more in common than eurozone states, sharing the same culture and language and facing similar political and economic challenges. “We have six countries that are homogeneous almost in all domains. They share similar production structures, which mean that they are all subject to symmetric shocks,” he said in an e-mail response to questions. “Therefore ... the GCC countries are better qualified to satisfy the optimum currency area criteria, and therefore to establish a monetary union, than the eurozone.” A Gulf official has said that the countries taking part in the single currency project are still dealing with organising the institutions and there was no decision yet on any programme or timings. “Now, we have a call by some countries (the Saudi kingdom) for political union, therefore, the monetary union can serve as an intermediate step in achieving that goal,” Alkhater said. Social unrest in the Middle East, which also hit Bahrain and Oman, and tensions over Iran’s disputed nuclear programme triggered a surprising Saudi Arabia’s proposal in December to create a Gulf Union.  But so far the plan has run into worries of some countries about increasing domination of Riyadh, the main force behind political and economic integration in the region, which controls about 30% of proven global oil reserves. A poll this month showed 14 of 15 analysts did not expect the Gulf to launch a single currency in the next five years. Eight out of 10 said the UAE’s return to the project in the future was unlikely or very unlikely. from gulf times.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

qatargcc should not delay monetary union qatargcc should not delay monetary union

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

qatargcc should not delay monetary union qatargcc should not delay monetary union

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday