Gulf currency reform meeting today April 6, 2008
Posted by mylastresort in analysis, bahrain, qatar, saudi arabia.Tags: Arab, Central Banks, Dirhan, Governers, Gulf, oman, qatar, Reform, Riyal, saudi arabia, Single currency, uae
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The Gulf central bank governers last meeting was six months ago. In the meeting the governers decided not to revalue their currencies in anticipation of a single currency union (plan of 2010). Since their meeting:
- UD Dollar has fallen 14% against the Euro
- US Federal Reserve lowered rates 6x
- Inflation in the Gulf has almost doubled
As Saudi Arabia claims that it has no currency reform plans, Qatar and UAE, have publicily announced that they are rethinking their pegs. It will be interesting to see how todays meeting turns out…
Charts & Numbers 
DOHA (Zawya Dow Jones)–Qatar’s top central bank official said Sunday that Gulf Cooperation Council partner Kuwait may repeg to its currency to the weakening U.S. dollar in line with the region’s plans for monetary union in 2010.
* GCC Secretary General: GCC Will Be Unified ‘At All Levels’
Sunday, Apr 06, 2008
(MORE TO FOLLOW) Dow Jones Newswires
06-04-08 0923GMT
* GCC Sec Gen: Oman Still Active In GCC, Leads Integration
Sunday, Apr 06, 2008
(MORE TO FOLLOW) Dow Jones Newswires
06-04-08 0925GMT
GCC Secretary General: GCC Will Be Unified ‘At All Levels’
Sunday, Apr 06, 2008
DOHA (Zawya Dow Jones)–All six members of the Gulf Cooperation Council have agreed to be unified at all levels, the organization’s secretary general said Sunday.
“We agreed that unification at all levels will be reached,” Abdulrahman bin Hamad Al Attiyah told reporters at a conference in Qatar.
When asked if that meant that Kuwait could repeg back to the weakening dollar, Al Attiyah said: “If you are talking about the dollar, Kuwait is still linked to the dollar in its currency basket.”
Gulf central bankers from Saudi Arabia, Kuwait, Qatar, the United Arab Emirates and Bahrain are meeting in Doha Sunday to discuss the timetable for unifying their currencies by 2010.
Kuwait broke ranks with Gulf states last year by abandoning its peg to the dollar. Economists estimate that 70% of Kuwait’s currency basket is made up of U.S. dollars.
All GCC members, apart from Oman which pulled out of the monetary union plan last year, are keen to declare monetary unification and issue the single currency by the existing 2010 schedule.
Attiyah said that Oman remains an active member of the GCC.
“Oman is very active in the GCC process and one of the leading in terms of integration,” he said.
-By Tahani Karrar, Dow Jones Newswires; +9714 364 4965; tahani.karrar@dowjones.com
(END) Dow Jones Newswires
06-04-08 0940GMT