Thread: GCC Single Monetary Union

Gulf monetary union deal 'more or less final'
Gulf Arab central bankers "more or less" finalised a monetary union deal this week that will be presented to finance ministers in September, the United Arab Emirates central bank governor said on Thursday.

The draft agreement that will pave the way for Saudi Arabia and four of its neighbours to launch a single currency is "more or less final, except for some typing errors", Sultan Nasser Al-Suweidi told reporters in Dubai.

His comments confirmed those of Naser Al-Kaud, deputy assistant secretary-general for the Gulf Cooperation Council (GCC) secretariat, made to Reuters after a meeting of central bankers in Doha.

Gulf monetary union deal 'more or less final' - Politics & Economics - ArabianBusiness.com

CHRONOLOGY-Gulf Arabs work toward monetary union

Gulf Arab oil producers are struggling to get a monetary union plan, including the launch of a single currency, back on track as the massive project with a self-imposed 2010 deadline falls increasingly out of reach.

Following is a timeline of selected events leading up to the creation of a monetary union for the world's biggest oil-exporting region, where most states peg their currencies to the dollar and face record- or near-record inflation.


1982 - Gulf states ratify an agreement "to coordinate their financial, monetary and banking policies ... including an endeavour to establish a joint currency".

Dec. 2001 - Gulf Arab rulers agree to draw up legislation for monetary union by 2005 and launch a single currency by 2010. The oil producers agree to peg their currencies to the dollar until achieving monetary union.

Jan. 2002 - Gulf states agree to reduce the unified customs tariffs to 5 percent on all imported goods by Jan. 1, 2003 as part of GCC customs union.

Oct. 2002 - Gulf states say they are seeking advice from the European Central Bank on their monetary union programme.

Dec. 2002 - Gulf rulers agree to complete a common market by the end of 2007.

Jan 2003 - Kuwait re-pegs its dinar to the dollar from a basket of currencies in preparation for monetary union.

April 2003 - The UAE finance minister says a single Gulf currency is likely in 2007, three years ahead of schedule.

Aug. 2004 - Gulf states should agree on the name of the single currency, its specifications and the mechanisms to put it into circulation by 2007, says GCC General Secretariat.

Aug. 2004 - The GCC Supreme Council is studying possibility of setting up a common central bank by mid-2006, the General Secretariat says.

May 2005 - Gulf states have made only "modest progress" toward the single currency, says Kuwait's central bank governor. Feb. 2006 - Gulf states are expected to agree on a joint monetary council by the end of the year to help harmonise monetary and fiscal policies, says GCC General Secretariat.

May 2006 - Kuwait allows dinar to rise by 1 percent.

Sept. 2006 - UAE central bank governor says single currency should be free-floating by 2015.

Nov. 2006 - Saudi Arabia's central bank governor said there were "reservations" about the 2010 timetable but that it was too early to talk about modifying it.

Dec. 2006 - Oman decides not to join monetary union by 2010 deadline, leaves door open for joining later. April 2007 - Saudi central bank governor calls 2010 deadline "very ambitious".

May 2007 - Kuwait drops dollar peg, dealing another blow to monetary union.

Sept. 2007 - Gulf Arab central bankers agree to develop separate policies to tackle soaring inflation after failing to inject momentum into a plan for monetary union. The 2010 deadline would be "difficult" to meet, Saudi central bank governor says.

Dec. 2007 - Gulf Arab rulers try to close ranks on currency policy and remained committed to a 2010 target date for monetary union, urging states to get it back on track.

Feb. 2008 - Oman's central bank governor says Oman has decided not to join monetary union at all.

April 2008 - Gulf central bankers agree on fresh impetus for efforts to create a single currency and resist pressure to revalue their currencies unilaterally to offset soaring inflation.

June 2008 - Gulf central bankers finalise the draft monetary union agreement and plans to set up a monetary council that will form the first leg of a common central bank.

They remain committed to the 2010 deadline, but Qatar's central bank governor says deadline does not refer to the currency.

CHRONOLOGY-Gulf Arabs work toward monetary union | Reuters

lets hope they want Iraq to be part of this....well Iraq does have lots of oil....and the dinar could use a boost...up to 3.22 per USD would be nice....