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RRM
06-01-2009, 12:21
Creating a single GCC currency is good news for Gulf business | Editorial Column (http://www.ameinfo.com/82431.html)

Wonder if this could achieve the status of a reserve currency in the future ?

Qdos
06-01-2009, 12:45
I find the author to be somewhat glib and ill-informed, especially in the way he cross references matters to the Euro which has not as yet even been adopted throughout the EU zone of course, and is not regarded as having 'eliminated' more problems than it may have caused.

The Arab nations will continue to link themselves to dollars and oil barrels and since not all of them have such oil revenue it would imply smoothing in a single currency will actually prove impossible due to this disparity.

Right now most of the Arab world might, however, like to universally barter with Israeli ear lobes...


"Euro precedent

It was more complicated for the euro area, for example, with the economies of Germany and Greece poles apart. But the benefits are already clear to see, and while European business certainly has its problems, almost everyone is agreed that creating a single currency has eliminated problems and not caused them..."

RIKO
06-01-2009, 13:45
Creating a single GCC currency is good news for Gulf business | Editorial Column (http://www.ameinfo.com/82431.html)

Wonder if this could achieve the status of a reserve currency in the future ? Sorry to pontificate but there is an important difference between a single Arab currency (as you put it), and a single GCC currency.

The GCC ("some of the Arabs") has some cohesion, the Arabs (as a whole) have little or none.

RRM
06-01-2009, 13:53
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The Arab nations will continue to link themselves to dollars and oil barrels and since not all of them have such oil revenue it would imply smoothing in a single currency will actually prove impossible due to this disparity.


The GCC countries have very similar GDP/per capita a much different scenario than the EU.