Kuwaiti Minister Says Gulf Currency May Be Linked to Basket
Nov. 17 (kuna) -- Gulf Arab states planning a single currency may choose to peg it to a basket of currencies rather than to the dollar, Kuwait’s Foreign Minister Sheikh Mohammed Sabah al-Salem al-Sabah told parliament.
“The single currency won’t necessarily be linked to a particular currency,” Al-Sabah said today. “It could be linked to a currency or a basket of currencies, and this will be discussed by GCC countries.”
The Kuwaiti parliament today delayed a vote to ratify an accord to establish a monetary council, a precursor to a unified Gulf central bank. Lawmakers said they needed more details on the impact of monetary union on the Kuwaiti economy and the dinar before voting. Unlike other Gulf states, Kuwait does not peg its currency to the dollar.
Gulf Cooperation Council states agreed to the accord at a December meeting in Muscat, Oman before the withdrawal of the United Arab Emirates in May this year. Four Gulf states, Saudi Arabia, Kuwait, Qatar and Bahrain agreed again to the plan in June, after the U.A.E. withdrawal. Oman pulled out in 2007.
The accord was ratified by Saudi Arabia’s Cabinet, the Saudi Press Agency reported Sept. 1. The agreement must be separately ratified by each country.
“The single currency will not be tomorrow or the day after, it needs sufficient time,” Kuwait Finance Minister Mustafa al-Shimali said in parliament today.
The U.A.E, the second-biggest Arab economy after Saudi Arabia, said May 20 it would no longer take part in the project to create a European Union-style monetary union. Two weeks earlier, Gulf leaders chose the Saudi capital of Riyadh as the site for the central bank.
The GCC includes Saudi Arabia, Kuwait, the U.A.E., Qatar, Bahrain and Oman.
Nov. 17 (kuna) -- Gulf Arab states planning a single currency may choose to peg it to a basket of currencies rather than to the dollar, Kuwait’s Foreign Minister Sheikh Mohammed Sabah al-Salem al-Sabah told parliament.
“The single currency won’t necessarily be linked to a particular currency,” Al-Sabah said today. “It could be linked to a currency or a basket of currencies, and this will be discussed by GCC countries.”
The Kuwaiti parliament today delayed a vote to ratify an accord to establish a monetary council, a precursor to a unified Gulf central bank. Lawmakers said they needed more details on the impact of monetary union on the Kuwaiti economy and the dinar before voting. Unlike other Gulf states, Kuwait does not peg its currency to the dollar.
Gulf Cooperation Council states agreed to the accord at a December meeting in Muscat, Oman before the withdrawal of the United Arab Emirates in May this year. Four Gulf states, Saudi Arabia, Kuwait, Qatar and Bahrain agreed again to the plan in June, after the U.A.E. withdrawal. Oman pulled out in 2007.
The accord was ratified by Saudi Arabia’s Cabinet, the Saudi Press Agency reported Sept. 1. The agreement must be separately ratified by each country.
“The single currency will not be tomorrow or the day after, it needs sufficient time,” Kuwait Finance Minister Mustafa al-Shimali said in parliament today.
The U.A.E, the second-biggest Arab economy after Saudi Arabia, said May 20 it would no longer take part in the project to create a European Union-style monetary union. Two weeks earlier, Gulf leaders chose the Saudi capital of Riyadh as the site for the central bank.
The GCC includes Saudi Arabia, Kuwait, the U.A.E., Qatar, Bahrain and Oman.
