A Single Currency For The GCC: Launching A New Culture

Abstract

The member states of the Gulf Cooperation Council (GCC) are moving towards launching a single currency by January 2010, an advanced step towards monetary union. These countries are characterized with a great degree of similarities whether political, economic, or social. This provides an advantage many regional economic groups lack. A single currency setting, as advocated in the literature, requires fulfillment of many conditions and requirements to assert its feasibility, desirability and durability. The SWOT methodology utilized in this paper presents a list of activities that must be thought of carefully before and after the year 2010, when the single currency is planned to circulate. Time is approaching fast, thus, GCC states should take serious steps in the remaining few years. The paper identifies very important issues that must be investigated and settled ahead of launching the common currency; among them the urgent need to establish super-national institutions and pooling legislations and economic environment.