GCC Finance Ministers OK Proposals to Set up Monetary Council
Arab News reported that on September 17, finance ministers of the Gulf Cooperation Council (GCC) met in Jeddah and approved proposals for a monetary council. Representatives from Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and the United Arab Emirates hope to utilize a single currency by 2010. Their oil-fueled economies have offered a safeguard against the current US economic decline and by pursuing a unified currency they anticipate further protection from US inflation and financial woes.
Now that this long awaited proposal has been approved, the next steps include deciding and understanding the powers of the central bank, overcoming inflation, creating an appropriate exchange system and balancing regulatory powers. The Director General of the International Monetary Fund, Dominique Strauss-Kahn commented, “Achieving a monetary union will be a major challenge as much remains to be done to enable the creation of a common currency.”
The finance ministers also discussed the EU’s response to the GCC’s view on difficulties that are slowing a free-trade agreement between the organizations.
Brandie Gordon
