GCC Currency Forum 2008 (Dubai, U.A.E.)

GCC Currency Forum 2008 (Dubai, U.A.E.)
Arabian Banking & Finance is delighted to announce the launch of GCC Currency Forum 2008 on June 2008 at Madinat Jumeirah, Dubai, U.A.E.

An established and respected magazine, "Arabian Banking & Finance" provides news, data and in-depth analysis for the region’s finance professionals, while also illustrating the latest trends and product developments within the industry. Every issue highlights the key stories of the month from across the region, identifying the current ‘hot’ topics and predicting their market impact. "Arabian Banking & Finance' is truly a mirror of the regional Finance industry".

The current debate on the GCC’s unified currency has proverbially stirred the hornet's nest. What is the rationale for the proposed unified currency? What basket of currencies ought to be used as the reference peg? Will the peg be a narrow or wide band, the first causing the currency to be overvalued in times of oil trade surpluses, while the latter inviting speculative pressure? Would domestic borrowing, as a certain percentage of GDP, be a major factor in determining who strays in or out of the unified GCC currency, or would other factors such as population be taken into consideration? How would a unified currency restrict national monetary and fiscal policies? Kuwait's move to peg the Dinar to a basket of currencies in flagrant violation of the stated dollar peg, Oman's recalcitrant attitude coupled with an unequivocal statement that meeting the GCC monetary union criteria may have a negative impact on its development plan.

Sticking to entrenched official stated positions is not helpful in this matter, as individual countries might break ranks and catch other GCC members by surprise as Oman and Kuwait have done. Economic policies, and specifically monetary policies, should follow and react to current realities
Whether the GCC unified currency comes about by 2010 or later is not the main issue now. The actions of Oman and Kuwait have brought to the surface fundamental questions of policy implication that need to be addressed and openly debated.

Looking forward to meeting you at the GCC Currency Forum 2008 on June 2008.