Although bankers met today to discuss plans to implement a single currency, the dropped January 1, 2010 deadline bodes ill for such an outcome.
“Even before the economic crisis deepened, monetary union in the near future was seen as unlikely,” said Simon Williams, chief economist at HSBC Holdings Plc in Dubai. “It now has to compete for attention with the impact of the global downturn on the Gulf – issues that are being dealt with at a national level rather than a regional basis.”
Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman agreed in 2001 to form a European Union-style monetary union by 2010 to boost regional trade. Oman pulled out in 2007.
What does this mean for Dinar Speculators? Well, quite simply – if the goal of a common currency had been reached, the revaluation of the Dinar would have been a non-issue. Since this is an apparent failure – let the speculation continue!
Source: Bloomberg.com
Related posts:
4 responses to "Gulf “Single Currency” hopes are dashed"
I wonder what the new currency of this Middle Eastern Union will be called?
I think that “Oily” would be a great name!
just trying to understand this sentence … “Well, quite simply – if the goal of a common currency had been reached, the revaluation of the Dinar would have been a non-issue. Since this is an apparent failure – let the speculation continue!” How, if the goal of a common currency had been reached would the RV be a non-issue? And how, since this is an apparent failure, does this help the RV?
This is an older article from last April. BUT, to answer your question – this news happened before the ERM came into play. Now it’s a different situation.
.
At the time, if the Dinar had been scooped into the Gulf dinar, there would have been no RV. Since that didn’t happen, we’re still in the game.
Adam – I am a novice to all this, but trying hard to catch up and become better educated. So, please bear with me. First, if and when the ‘Gulf Single Currency’ becomes a reality, what are the implications for the current Iragi Dinar? I recently bought several 25k Dinar notes. Will these be easily converted to the new ‘Gulf Single Currency’ and valued as such? And secondly, how should I proceed at that time to exchange my existing Dinars to the GSC notes?
Leave a comment
Sorry, the comment form is closed at this time.