? on GCC currency

[klosecall]

The GCC is creating a new currency for the region. So my question is. ...how will it be valued? An average of their current values? would it make sense to own Saudi's riyall since it is lowest value of the 4?

[whisky runner]

i am sure this new GCC money will not hold a value as oil is getting harder to get out of the ground and there running low on oil after 60 years of pumping oil ....

about the bank all it is is a central bank set up so these country can and must go thur this central bank to do business outside of there country … each country will have there own currency … like the euro … the banker are trying to set up banks for world business … if they get there way there will be 6 of these banks … china, japan and S. Korea world bank … the GCC … the euro, the amero … Indonesia, Singapore, and around that part of the world bank then a central Africa bank …. Six banks to do the world trading instead of many banks and nations …. The shut down is so the banks can find a rate to the new currency … and so the trading can go thur this new world bank and not the small nations … the usa is setting up these banks and starting them with 120 billions dollars each … nice job giving usa dollars away …

[Torey0112]

Whiskey runner.. Could you post the article to which you are refering to the 6 banks and 120 billion the the USA is giving out?? Thank you. .. I think we would all like to read it.

[Phoenix]

The GCC is creating a new currency for the region. So my question is. ...how will it be valued? An average of their current values? would it make sense to own Saudi's riyall since it is lowest value of the 4?

Gulf dinar 'to replace four local currencies'

Friday, June 19, 2009

Four Gulf oil producers planning monetary union are expected to name a new common currency the Gulf dinar, a Saudi academic said yesterday.

And the new currency will run in tandem with national coins and notes now in circulation to ease the transition, he said.Wadei Ahmed Kably, economics professor at the King Abdul Aziz University in the Saudi Red Sea Port of Jeddah, said he expected the Gulf dinar to be issued by the Gulf Central Bank and set at SR10, nearly $2.66.

Based on the European Union experience, I expect the new currency to be circulated along with the existing national currencies in the Gulf Cooperation Council," he told the Saudi Arabic language daily Al Watan."Both currencies will remain in circulation by banks and individuals for one or two years so the public get used to the new currency.

National currencies could then be gradually withdrawn within five years so the public will not feel any difference," he told the paper. Saudi Arabia, the world's largest oil exporter, Kuwait, Qatar and Bahrain are pushing ahead with the monetary union plans following the withdrawal of the UAE and Oman. GCC officials have not announced the name of the new currency nor its value or peg but they have made clear their currencies would remain pegged to the dollar until a new currency and peg is decided.

Oman pulled out of the scheme in 2007 on the grounds it is not ready yet while the UAE announced last month it was quitting in an apparent protest at the GCC leaders' decision to choose Riyadh as the location of the Gulf Central Bank.Saudi American Bank (Samba) last week said the UAE pulled out of the proposed union after insisting on hosting the Central Bank and keeping national currencies in circulation.

The currencies of Saudi Arabia, Bahrain and Qatar have long been pegged to the US dollar while Kuwait reverted to a basket of currencies in May 2007 in a bid to tackle soaring inflation, for which it blamed the weakening dollar.

original post June 18, 2009

http://articlesofinterest-kelley.blogspot.com/2009/06/gulf-dinar-to-replace-4-local.html

[klosecall]

Still little confused. So say value of gcc currency is at the2.67 level. What does that do to value of the saudi royall which is lower than that? And please excuse my ignorance on this.

[Sherlock]

Still little confused. So say value of gcc currency is at the2.67 level. What does that do to value of the saudi royall which is lower than that? And please excuse my ignorance on this.

It doesn't change it at all. Look at the post above yours again.

"he expected the Gulf dinar to be issued by the Gulf Central Bank and set at SR10, nearly $2.66."

That SR10... that is Saudi Riyal 10. So 10 Saudi Riyals will eqaul 1 new Gulf Dinar.

The Kuwaiti Dinar which is currently $3.47 to the dollar would be worth 1.3 new Gulf Dinars.