Momentum Builds for Single Pan-Arab Currency
According to the CEO of Gulf One Investment Bank in Bahrain, “the US dollar has failed.” The Arab states may not all share that exact opinion on the dollar, but they have come to agreement on establishing a single regional currency. The working name appears to be the “Gulfo.”
Here’s what Ambrose Evans-Pritchard writes for the Telegraph:
“‘The Gulf monetary union pact has come into effect,’ said Kuwait’s finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait.
“The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they amount to regional superpower with a GDP of $1.2 trillion (£739bn), some 40pc of the world’s proven oil reserves, and financial clout equal to that of China.
“Saudi Arabia, Kuwait, Bahrain, and Qatar are to launch the first phase next year, creating a Gulf Monetary Council that will evolve quickly into a full-fledged central bank.”
The dollar’s weakness is palpable around the world and we’re likely to see even more alternatives to its use cropping up over time. This coverage of the Gulfo came to our attention via Zero Hedge, and the full article is available in a Telegraph article on the petro-currency.