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On a Common Currency for the GCC Countries
Author:
Mr. Esteban Jadresic
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Series:
IMF Policy Discussion Papers
Volume/Issue:
Volume 2002: Issue 012
Language:
English
Publication Date:
01 Dec 2002
DOI:
https://doi.org/10.5089/9781451969481.003
ISBN:
9781451969481
ISSN:
1564-5193
Pages:
27
Keywords:
PDP; GCC country; currency; single currency; common currency; cost; GCC countries; GCC heads of state; GCC currency; GCC member states; GCC economy; Currencies; Monetary unions; Exchange rate arrangements; Exchange rates; Exports; Europe; Asia and Pacific
Legal-disclaimer:
This Policy Discussion Paper should not be reported as representing the views of the IMF. The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Policy Discussion Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
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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.
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Cover IMF Policy Discussion Papers
IMF Policy Discussion Papers
ISSN:
1564-5193
Publisher:
International Monetary Fund