Sunday, November 1, 2009
Gulf monetary council 'on track'
Kuwait, Saudi Arabia, Qatar, and Bahrain signed an accord in June to create a joint monetary union council as a precursor to a Gulf central bank. Oman and the UAE are still questioning the idea of joining and creation of the council. The UAE wants to keep it own dirhams (currency) which will remain pegged to the dollar whereas Oman is not ready to follow the preconditions of joining the council.
Subscribe to:
Post Comments (Atom)
2 comments:
This should be an interesting development to follow. I wonder if this agreement may have any kind of affect on what OPEC does. I also wonder what Oman's and the UAE's reasoning is for not joining. Do they think that their currency will be undervalued by joining the other nations or maybe they want to have complete control of their monetary policy?
I agree this will be a very interesting development to follow. The article does not say much about the main reasons behind why they are not willing to join but I believe it must be controlling their monetary policy. UAE is not too happy about having Riyadh chosen to host the bank. There might be some political issues behind it as well.
Post a Comment