Common GCC currency by the end of the year

Sources have confirmed plans to introduced a single currency for the GCC by the end of the year, according to Gulf News.

Bahraini daily Akhbar Al Khaleej said the new currency will be pegged to the dollar and will be introduced in four GCC countries - Bahrain, Qatar, Kuwait and Saudi Arabia. According to the unnamed source, the UAE and Oman will not be joining the new currency.

There have been talks of a monetary union for the region for more than 15 years. In 2006, Oman was the first country to pull out of the plan.

After Saudi Arabia was chosen as the host country for the proposed joint central bank in May 2009, the UAE ruled out plans to join the currency. The country isn’t reconsidering its position local press reports stated. Earlier last week, the Governor of the UAE Central Bank, Sultan Nasser Al Suwaidi, said the UAE will not be joining plans for a common currency at the moment.

Speaking at a press conference organised by the National Media Council, Al Suwaidi said there can be ‘there can be no unification of the currencies until a Gulf Common market has been established which is a fully-integrated and legally-recognised financial bloc’