On a Common Currency for the GCC Countries
December 1, 2002
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Order a Print CopyDisclaimer: 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.
Subject: Currencies, Economic integration, Exchange rate arrangements, Exchange rates, Exports, Foreign exchange, International trade, Monetary unions, Money
Keywords: Asia and Pacific, common currency, cost, Currencies, currency, Europe, Exchange rate arrangements, Exchange rates, Exports, GCC countries, GCC country, GCC currency, GCC economy, GCC heads of state, GCC member states, Monetary unions, PDP, single currency
Pages:
27
Volume:
2002
DOI:
Issue:
012
Series:
Policy Discussion Paper No. 2002/012
Stock No:
PPIEA0122002
ISBN:
9781451969481
ISSN:
1564-5193
