On a Common Currency for the GCC Countries

Author/Editor:

Esteban Jadresic

Publication Date:

December 1, 2002

Electronic Access:

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Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper assesses the eventual replacement of the currencies of the GCC countries with a common currency. It concludes that a properly implemented currency union may contribute to enhance economic efficiency in the region, deepen regional integration, and develop its non-oil economy. However, it cautions that a currency union should be seen as only one component of a much broader integration effort. This should include the removal of the distortions that inhibit intraregional trade and investment, agreements on policy frameworks to ensure macroeconomic stability, and further political integration. The paper also addresses the choice of exchange rate arrangement for the unified currency.

Series:

Policy Discussion Paper No. 2002/012

Subject:

Currencies Economic integration Exchange rate arrangements Exchange rates Exports Foreign exchange International trade Monetary unions Money

English

Publication Date:

December 1, 2002

ISBN/ISSN:

9781451969481/1564-5193

Stock No:

PPIEA0122002

Pages:

27

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