Unified Gulf currency

[Dinar Holder]

http://articlesofinterest-kelley.blogspot.com/

This is the first i hear about a "?Unified Gulf Currency"

What will this do to the dinar?

Article is dated todays date 12/26/2010

[MahiMahi]

http://articlesofint...y.blogspot.com/

This is the first i hear about a "?Unified Gulf Currency"

What will this do to the dinar?

Article is dated todays date 12/26/2010

Great link with links to other great articles.

From past chats and articles I believe Iraq would be excluded from this... just as United Emarites has declined.

Thanks again for the link!

[ardentscientist]

Yes, great find. It's got me a bit worried. I could see the incentive for Iraq to jump all over this. Am I wrong?

[xxxgator]

Iraq is seeking to be a traded currency and is the only democracy besides isreal in the mideast.Linking with the other Arab currancy's will actually cause them trade problems.

[smee2]

This is a situation that has been "brewing" for years. Saudi Arabia, as mentioned, has already declined involvement, wishing to keep their own currency. I could be that it never really happens to the degree the organizers would have it. They would like to see ALL Arab countries on one currency, much as those touting the Euro wanted all European countries to switch to the Euro, and use only the Euro. After years of lobbying and pushing and positioning, the Euro does exist but not to the exclusion of the use of other currencies, i.e. the British Pound.

IF Iraq were to follow other Arab countries to adopt a common currency ... and really considering all the intransigence and the inability of them to agree on something even among the tribes that make up their own country, can you see it ever happening? ... IF they were to agree to this, it would not be for years to come. It would take considerably longer than the RV is taking.

So, I wouldn't worry about it.

smee2

[TWONS29]

Smee I like your imput. You have knowledge.

[smee2]

Smee I like your imput. You have knowledge.

THANK YOU !!!

I am enjoying the sometimes very lively debate, and usually well thought out questions, and mostly very well informed answers I am finding on this site. The people here seem to be very good people and have been very gracious about accepting a new person on the list.

smee2

[DaveH]

Don't get too upset by this. It is a blog, one person's opinion, not news or fact.

[r.fine]

http://www.gulfinthemedia.com/index.php?m=economics&id=547977〈=en&PHPSESSID=fd8fb8c9d8c0380fe5f7e52e68afee26

Print Send This Page

Save Listen to this Article

GCC Monetary Council to form executive body

Saudi Gazette - 25 December, 2010

The central bank governors from six Gulf countries agreed Wednesday to pursue plans to set up an executive body ahead of the creation of the region's first central bank.

The Gulf Cooperation Council (GCC) central bank governors said they had already approved the budget of the GCC Monetary Council (GMC) and would hold more talks through 2011 to establish an executive body that will carry out the GMC’s functions.

"The executive body is to be drawn from the four members and will be headed by a CEO, who will pick the administrative staff and devise plans of action," Aleqtisadiah Arabic daily said.

"The GMC will assume a supervisory role while the executive body will chalk out plans and implement GMC’s decisions."

The paper said the GMC should hold at least six meetings every year pending the creation of a GCC central bank, which will in turn launch a single currency.

In press comments Wednesday, GCC Secretary General Abdul Rahman Al Ateyya urged the other GCC members to rejoin the currency union to ensure full economic merger within the 29-year-old Gulf alliance.

UAE quit the monetary union in early 2009, while Oman quit two years earlier.

[TWONS29]

smee when do you really expect the RV... by the way in that link that is posted in this topic did you happen to read this? DECEMBER 30, 2010 ~ IMF SDR RATE REVISION ~ JANUARY 1, 2011 ~ NEW RATE TAKES EFFECT ...

snip ~ The first SDR exchange rate using the new basket will be posted on January 3, 2011 SDR Basket Rate

The amounts of each of the four currencies to be included in the new SDR valuation basket will be calculated on December 30, 2010 in accordance with the new weights, and will go into effect on January 1, 2011.

The calculation will be made on the basis of the average exchange rates for these currencies over the three months ending on that date in such a manner as to ensure that the value of the SDR will be the same on December 30, 2010 under both the revised valuation and present valuation baskets.

SDR Interest Rate

The IMF also reviewed the method for determining the SDR interest rate and decided to continue to set the weekly interest rate on the basis of a weighted average of interest rates on short-term instruments in the markets of the currencies included in the SDR valuation basket. The interest rate on the three-month Treasury bills of the United States, United Kingdom, and Japan, and the three-month Eurepo rate will continue to serve as the representative interest rates for the U.S. dollar, pound sterling, Japanese yen, and euro, respectively.

A press release providing the final currency amounts in the new SDR valuation basket to take effect on January 1, 2011 will be issued by the IMF on December 30, 2010. http://articlesofinterest-kelley.blogspot.com/

[Caducues]

This link is a gold mine! thank you!

[smee2]

smee when do you really expect the RV...

I have no idea ... just following the rest of us and hoping every day.

When the RV finally does happen, I intend to purchase, every year before the new year, a brand new, vry expensive, beautiful wall calendar. I will then, on New Year's Day, take a very large, very black, very dense, indelivle ink, felt nib marker, and cross off every @&%$#! MONDAY in the entire year!

Actually, I have been thinking it will be by the end of the year. I had a twinge today reading a chat that had something on it about the parliament scrapping the budget to start over. But then it seems from another chat that it didn't happen. So, I will wait it out like everyone else. I most likely know less than you do about all this. I have learned a lot in the past year but I still don't understand so much. So it will come as great a surprise to me as to you when it does finally happen.

I wish you , and all the posters here, the very best of things in the New Year ... and hopefully that will include the last year of budget champaign to toast 2011. By the time we are toasting the ariival of 2012 we should be well used to buying the more expensive version of everything! hahahaha

Take care of yourself ... and do yourself and someone else a big favour ... tell someone you love how much you love them.

smee2

[pops]

Caducues

This link is a gold mine! thank you!

I agree and thanks for the links. This gives me some good reading and food for thought.

[jte70]

Take care of yourself ... and do yourself and someone else a big favour ... tell someone you love how much you love them.

smee2

Thanks Smee. You're right I don't think they could ever agree upon anything enough to have a unified currency.

And gratitude is the attitude. That's my now resolution. Not even "new year's," but now.

[Rogue Knight]

Iraq is seeking to be a traded currency and is the only democracy besides isreal in the mideast.Linking with the other Arab currancy's will actually cause them trade problems.

[/quote

Excellent point!!! The Saudi Arabians have the fourth largest welfare state in the world, I don't think they would want a Unified Currency under an Absolute Monarchy. Too many political issues to agee on one currency.....IMO

[ceaser]

Unified Gulf Currency may a partial reason why the RV is being put off and off and off. The Bush admin (George Sr) was looking into this post first Gulf war. Kuwait wanted nothing to do with the idea but times are different now. Watch the RV being delayed well into 2011 if not 1012.

Edited December 26, 2010 by ceaser

[ceaser]

Don't get too upset by this. It is a blog, one person's opinion, not news or fact.

Wrong, do some research mr Mod thats your silly job. This may in the plans.....no RV yet people and not anytime soon

http://www.telegraph.co.uk/finance/markets/2818551/Gulf-states-stall-on-the-way-to-currency-union.html

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=406519&version=1&template_id=36&parent_id=16

http://archive.arabnews.com/?page=6&section=0&article=107812&d=13&m=3&y=2008

http://www.hindustantimes.com/UAE-open-to-unified-currency/Article1-635154.aspx

Edited December 26, 2010 by ceaser

[Tiffany23]

They will see how the EU currency is a failure and will not do it.. IMO

smee and Maximus are correct, they would have to give up fiscal policy and some monetary policy to a central policy council....in order for that to work, everyone has to play by the rules...the EU found out that isn't possible...against human nature. Very unlikely that Iraq would join IMHO.

[jack]

Found this there. All GCC news links.

http://articlesofinterest-kelley.blogspot.com/2009/12/links-gcc-summit-december-14-16-2009.html

[marcuscurtis]

This is a situation that has been "brewing" for years. Saudi Arabia, as mentioned, has already declined involvement, wishing to keep their own currency. I could be that it never really happens to the degree the organizers would have it. They would like to see ALL Arab countries on one currency, much as those touting the Euro wanted all European countries to switch to the Euro, and use only the Euro. After years of lobbying and pushing and positioning, the Euro does exist but not to the exclusion of the use of other currencies, i.e. the British Pound.

IF Iraq were to follow other Arab countries to adopt a common currency ... and really considering all the intransigence and the inability of them to agree on something even among the tribes that make up their own country, can you see it ever happening? ... IF they were to agree to this, it would not be for years to come. It would take considerably longer than the RV is taking.

So, I wouldn't worry about it.

smee2

your assessment is right on target. Good analysis!!

[smee2]

Excellent point!!! The Saudi Arabians have the fourth largest welfare state in the world, I don't think they would want a Unified Currency under an Absolute Monarchy. Too many political issues to agee on one currency.....IMO

Every time I hear that phrase "welfare state" referring to Saudi Arabia, I have this instant picture of Arabian people in long flowing robes and veils and head coverings lined up at a welfare office collecting food stamps and unable to find work. But I have a good friend who worked three tours in Saudi Arabia at the King Faisal hospital, four years each stint, and he tells it another way. Being a monarchy the royal rulers own all the land and all that's under it, which means the oil. They get foreign companies to come in and harvest their riches and pay them plenty for the privilege. Their people don't do the surveys, building, drilling or maintenance. Meanwhile the country has all the amenities that money can afford, the very best hospitals for one thing, as well as all the social and economic benefits basically free to their people. But of course their people don't work in the hospitals mostly. They basically hire lab and blood techs as well as food prep staff from North America and Europe, Clerical staff is hired from Europe and northern Africa among other places while cleaning and maintenance usually come from poorer South American and some European countries. The Philippines are noted for suppling their need of nurses and on-floor medical staff while doctors are from all over the world. There are even doctors from Saudi who chose to work and have a career. And that is the ticket ... the Saudis usually work in careers not just jobs. Hotels are run basically the same way. Staff is mostly foreign; there are companies in Europe, Britain, Canada, the Philippines, the US, northern Africa and South America as well as Australia actively recruiting enough workers to do the work of the country. The Saudis don't do the work. They are rich and don't have to as the foreigners perceive it. Every Saudi receives a certain amount of money based on the oil revenues. They get this quarterly or monthly I believe depending on what they do. Other than farmers and bricklayers and truck drivers, to use random examples of the kind of jobs the Saudis do work at, they just don't. Traditionally the Saudi Arabian people were goat and camel herders, and traders who ran the caravans east and west delivering goods each way from eastern Asia to the doorstep of Europe and from there the goods were traded to Britain and eventually the new world. So they were herders and carters and traders (businessmen). Anyway, my perception of the welfare line up for the Saudi Arabians who live in this "welfare state" was totally wrong, and based on what I had seen here in North America. And this is only true for native born Saudis. The same is so with Kuwait, where only the native born Kuwaiti men are allowed to wear a particular kind of head covering and the square thingy that holds it on. It is a sign of a true born son of the country, a true believer, and a sign that they do not have to work but receive money every month. I know here in Canada we have a similar arrangement on a smaller scale to deal with Native populations, treaties involving the payment of monies yearly to the tribes, and then from the tribes monthly to its members. So you can't just go to Saudi or Kuwait and start collecting "welfare" money and stop working, in case that thought crossed your mind. Not that it would ever have crossed mine. hahaha.

Anyway, I just thought I would share. I am interested in Iraq and the dinar and the RV, naturally. But I find details about the cultures and societal particulars of these people and their neighbours to be fascinating. I may be the only one who does, in which case I hope you didn't waste time reading the entire post.

smee2

[BtrFuture4All]

I found your posts interesting smee2. I had read similar before. It is hard for me to visualize the long robes and head coverings and a modern society.... that is until I see photographs of their people standing in front of some magnificent modern building with great architectural qualities. Wish I had the link of one I saw recently.

I didn't get interested in anything overseas until I started following the Iraqi dinar. Then I equated Iraq with the cradle of civilization. Then I got even more interested in TV shows by those who relate Biblical scriptures to today's headline news. Now I find it all quite fascinating and feel honored to be a part of all this. I never figured I'd be living at this age and time in history.

[Action316]

smee and Maximus are correct, they would have to give up fiscal policy and some monetary policy to a central policy council....in order for that to work, everyone has to play by the rules...the EU found out that isn't possible...against human nature. Very unlikely that Iraq would join IMHO.

I Agree...

[deenar]

Wrong, do some research mr Mod thats your silly job. This may in the plans.....no RV yet people and not anytime soon

http://www.telegraph.co.uk/finance/markets/2818551/Gulf-states-stall-on-the-way-to-currency-union.html

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=406519&version=1&template_id=36&parent_id=16

http://archive.arabnews.com/?page=6&section=0&article=107812&d=13&m=3&y=2008

http://www.hindustantimes.com/UAE-open-to-unified-currency/Article1-635154.aspx

Please stay off this site until then "newbie". Disrespecting mods gives you away. I'm sure you've been banned 5 or 6 times already.

[coolbeans]

Saudi Arabia is where the GCC Central Bank will be located. The UAE wanted the Central Bank to be in their country but it was agreed by the GCC member States to be in Saudi Arabia. Here's an interesting link.

GCC Bank Headquarters in Riyadh ... Saudi Arabia http://articlesofinterest-kelley.blogspot.com/search/label/GCC%20Bank%20Headquarters%20in%20Riyad