On a Common Currency for the GCC Countries
IMF Policy Discussion Papers, December 1, 2002
Source details
- Canonical URL
- On a Common Currency for the GCC Countries
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Bibliographic details
- Authors: Esteban Jadresic
- Published: December 1, 2002
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451969481.003
Summary and main conclusion
- 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.
- It cautions that a currency union should be seen as only one component of a much broader integration effort.
Conditions and complementary reforms required
- The broader integration effort should include:
- the removal of the distortions that inhibit intraregional trade and investment,
- agreements on policy frameworks to ensure macroeconomic stability,
- further political integration.
Exchange rate arrangement
- The paper also addresses the choice of exchange rate arrangement for the unified currency.
Subjects and keywords
- Subjects: 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
Content in this bundle
- On a Common Currency for the GCC Countries - PDP/02/12