Arab Gulf States To Launch A Single Currency
An agreement has been reached by the Arab Gulf States To Launch A Single Currency in the same way which the Euro was modelled. This new currency would give the large oil exporting economies a greater influence in the global foreign exchange and capital markets, thus rivalling and possibly even replacing the US dollar as the pricing currency for oil.
The concept of the Gulf Monetary Union was inspired by the European Monetary Union, which is viewed as an enormous success by the majority of Arab states. The states of Kuwait, Bahrain, Qatar and the regional super power Saudi Arabia are to launch the first phase for the creation of the Gulf Monetary Union later this year by founding a Gulf Monetary Council which will be quickly utilised as a full-fledged central bank. Such a move will certainly make waves for forex traders at trading companies such as Forexyard and should offer traders plenty of opportunity to make a profit.
However many analysts and traders believe that a fully-fledged single Arab currency which is capable of rivalling the US dollar is many years away. The creation of Europe Monetary Union, which the Arab states are modelling their own single currency on, took over 40 years before it reached the point where it was ready to launch a single currency. Even though some years away, traders of foreign exchange and other global markets will be keeping a close eye on happenings in the Gulf region, waiting for the opportunity to profit from the impending shift in the global markets.
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