Officials Deny Single Gulf Currency Launch

Officials Deny Single Gulf Currency Launch

Doha Socialite
By Doha Socialite

The Gulf Monetary Council has denied media reports concerning the finalisation of the launch of a single currency for Bahrain, Kuwait, Qatar and Saudi Arabia.

Earlier this week, media reports claimed that the four GCC countries will announce a common currency by the end of this year.

The currency would reportedly be pegged to the dollar, the report said without revealing its sources.

However the Gulf Monetary Council has dismissed the rumours.

“The Monetary Council affirms that the reports by some newspapers and websites over the date of the issuing of the single Gulf currency are completely false, not based on accurate information nor reliable sources,” the council said in a statement published by Kuwait News Agency.

The Monetary Council is mandated with placing regulations for the establishment of the Gulf Central Bank and completing the establishment of the Monetary Union.

Media reports have also claimed that Oman and the UAE will not be part of the common currency.

Sultan Nasser Al Suwaidi, UAE’s central bank governor, told the media last month that the UAE has withdrawn from the monetary union.

He dismissed the formation of a GCC wide currency saying that currencies cannot be unified until a common Gulf market, which is a recognised financial bloc, is formed.

The GCC countries have been discussing the formation of a currency union, similar to the Eurozone, for the last 15 years.

However European Central Bank officials have suggested that the GCC should not introduce a common currency without a clear objective. (Gulf Business)

COVID-19 Banner
By Equin0x• 7 years 6 months ago.
Rating: 5/5
Equin0x

Most of the GCC currencies are already pegged on a fixed parity basis, with US Dollar for international trade settlements, and perhaps, there is no major upside in creating a GCC common currency. However in order to avoid risks associated with the fall (weakening) of US Dollar in future, the GCC countries can convert their long term oil and gas sale agreements in Euro, US dollar and Yuan with some upper limits, that could effectively counter the dollar fall risks. Single currency reliance is definitely dangerous for the international trade reliant economies, and therefore contracts diversification is essential.

Log in or register to post comments

More from Qatar Living

WATCH: Qatari aid will be used for Gaza reconstruction: Al Khater

WATCH: Qatari aid will be used for Gaza reconstruction: Al Khater

In an interview with Sky News, HE the Assistant Foreign Minister and Spokesperson for the Ministry of Foreign Affairs Lolwah bint Rashid Al Khater debunked propaganda about Qatari aid for Palestine being used for “non-humanitarian purposes.”
Ashghal opens 38km long shared pedestrian cycling path on Al Khor road

Ashghal opens 38km long shared pedestrian cycling path on Al Khor road

The track is 38 km long and 6 meters wide, passing through 18 underpasses, to provide a smooth and uninterrupted movement.
How to obtain the certificate of immunity in Qatar

How to obtain the certificate of immunity in Qatar

The Ministry of Public Health has highlighted steps that can be followed to download the certificate of immunity via the MyHealth online portal.
QL Exclusive: An interview with the founder of SCALE Qatar, Sindhu Nair

QL Exclusive: An interview with the founder of SCALE Qatar, Sindhu Nair

Qatar Living speaks to Qatar-based editor and founder of SCALE Qatar, Sindhu Nair, to know more about her experience and career journey.
WATCH: A guide to countries you can visit for your long-awaited break

WATCH: A guide to countries you can visit for your long-awaited break

From relaxing beach escapes to hiking in the mountains, citizens and residents of Qatar now have options when it comes to international travel. 
WATCH: Qatar has supported several countries, organizations in fighting COVID-19

WATCH: Qatar has supported several countries, organizations in fighting COVID-19

Qatar has extended support to several countries and organizations to help them fight the COVID-19 pandemic, Her Excellency the Minister of Public Health Dr Hanan Mohamed Al Kuwari highlighted yesterday.
WATCH: QRCS issues QR60 million humanitarian aid appeal for Palestine

WATCH: QRCS issues QR60 million humanitarian aid appeal for Palestine

Qatar Red Crescent Society (QRCS) president, Sheikh Abdullah bin Thamer Al Thani, announced yesterday that the organization has launched a QR60 million fundraising campaign for Palestine.
WATCH: Why you should find a job in Qatar

WATCH: Why you should find a job in Qatar

“Wow, you are in Qatar!? That’s great! You are so lucky, you can watch the World Cup now. Heard they have lovely stadiums..."  This is one of the standard sentiments expats in Qatar would come across these days when they go back to their homeland.