HISTORY:
In 1982, the GCC countries ratified an agreement that stated clearly "the member states shall seek to coordinate their financial, monetary and banking policies and enhance cooperation between monetary agencies and central banks, including an endeavor to establish a joint currency in order to further their economies."
CHAPTER SIX
FINANCIAL AND MONETARY COOPERATION
ARTICLE 2 1
Member States shall seek to unify investment rules and regulations in order to achieve a joint investment policy aimed at directing their domestic and foreign investments towards serving their interest, and realizing their peoples' aspirations for development and progress.
ARTICLE 2 2
Member States shall seek to coordinate their financial, monetary and banking policies
and enhance cooperation between monetary agencies and central banks, including the endevour to establish a joint currency in order to further their desired economic.
ARTICLE 2 3
Member States shall seek to coordinate their external policies in the sphere of
international and regional development aid.
Saturday, January 26, 2008
No revaluation, Bahrain insists
by Natsuko Waki on Sunday, 27 January 2008
Bahrain's crown prince said on Saturday that even talking about revaluing the local currency against the dollar was irresponsible and the country had no plans to adjust the value of the dinar.
Speaking to newswire Reuters on the sidelines of the World Economic Forum (WEF), Sheikh Salman bin Hamad Al-Khalifa also said Bahrain's economy will grow around 7% this year and he was not concerned by the dollar's recent fall.
Speculation intensified that Gulf countries might revalue their currencies against a falling dollar after Kuwait broke ranks and started tracking a currency basket in May.
"Even talking about revaluation is irresponsible, and very counter productive. We have no intention of revaluing - plain, black and white," Sheikh Salman said.
Bahrain is one of the six Gulf currencies preparing for monetary union as early as 2010.
After hitting a record low against a basket of currencies, the dollar has failed to stage a lasting recovery due to concerns about a recession in the US economy.
"These things change very quickly by the world event or leadership, or changes in public sentiment. So I'm not concerned. Currencies go up and down," said Sheikh Salman, who runs the Economic Development Board, which oversees economic strategies.
He noted the world has experienced difficulties surrounding the US economy in the past but growth of Asian emerging countries are cushioning the damage this time.
"The main difference of course this time is that we have India and China rising. So the projections are that the world economy will grow by 4%," he said.
Bahrain is on a drive to restructure state firms ahead of planned privatisation and overhaul the labour market to give more jobs to Bahrainis over foreigners who make up about a third of the kingdom's population.
But analysts say the crown prince and his father's uncle Sheikh Khalifa bin Salman Al-Khalifa - prime minister for more than 35 years - are split over reforms and vision for the country's future.
In a rare display of royal disharmony, Bahrain's King Hamad bin Isa Al-Khalifa warned in January the government should not delay reforms led by the crown prince.
Sheikh Salman said on Saturday more needed to be done.
"I'm never completely satisfied, otherwise I will stop the reform process so one has to be always a little bit more ambitious and we have many ideas to pursue."
On the overall economy, Sheikh Salman expected growth of 7% this year, in line with the previous few years. (Reuters)
http://www.arabianbusiness.com/509269-no-revaluation-bahrain-insists
Bahrain's crown prince said on Saturday that even talking about revaluing the local currency against the dollar was irresponsible and the country had no plans to adjust the value of the dinar.
Speaking to newswire Reuters on the sidelines of the World Economic Forum (WEF), Sheikh Salman bin Hamad Al-Khalifa also said Bahrain's economy will grow around 7% this year and he was not concerned by the dollar's recent fall.
Speculation intensified that Gulf countries might revalue their currencies against a falling dollar after Kuwait broke ranks and started tracking a currency basket in May.
"Even talking about revaluation is irresponsible, and very counter productive. We have no intention of revaluing - plain, black and white," Sheikh Salman said.
Bahrain is one of the six Gulf currencies preparing for monetary union as early as 2010.
After hitting a record low against a basket of currencies, the dollar has failed to stage a lasting recovery due to concerns about a recession in the US economy.
"These things change very quickly by the world event or leadership, or changes in public sentiment. So I'm not concerned. Currencies go up and down," said Sheikh Salman, who runs the Economic Development Board, which oversees economic strategies.
He noted the world has experienced difficulties surrounding the US economy in the past but growth of Asian emerging countries are cushioning the damage this time.
"The main difference of course this time is that we have India and China rising. So the projections are that the world economy will grow by 4%," he said.
Bahrain is on a drive to restructure state firms ahead of planned privatisation and overhaul the labour market to give more jobs to Bahrainis over foreigners who make up about a third of the kingdom's population.
But analysts say the crown prince and his father's uncle Sheikh Khalifa bin Salman Al-Khalifa - prime minister for more than 35 years - are split over reforms and vision for the country's future.
In a rare display of royal disharmony, Bahrain's King Hamad bin Isa Al-Khalifa warned in January the government should not delay reforms led by the crown prince.
Sheikh Salman said on Saturday more needed to be done.
"I'm never completely satisfied, otherwise I will stop the reform process so one has to be always a little bit more ambitious and we have many ideas to pursue."
On the overall economy, Sheikh Salman expected growth of 7% this year, in line with the previous few years. (Reuters)
http://www.arabianbusiness.com/509269-no-revaluation-bahrain-insists
Kuwait pegs dinar to basket of currencies
KUWAIT CITY (Thomson Financial) - Kuwait on Sunday pegged its dinar to a basket of international currencies after more than four years of linking the local currency to the dollar, in a bid to reduce inflationary pressures.
The oil-rich emirate had historically pegged the dinar to a basket of currencies before pegging it to the dollar in January 2003 in preparation for single currency in Gulf Cooperation Council states planned for 2010.
The value of the dinar immediately jumped from 289.14 fils to the dollar to 288.01 fils on the news. There are 1,000 fils in one Kuwaiti dinar.
Central Bank (other-otc: CHPA.PK - news - people ) governor Sheikh Salem Abdul Aziz al-Sabah said in a statement quoted by the state-run KUNA news agency that a sharp decline in the dollar's value had a negative impact on the Kuwaiti economy in the past two years.
Kuwaiti economist Hajjaj Bukhdour said the decision will help reduce 'imported inflation.'
Sheikh Salem reiterated Kuwait's commitment to plans for a single currency among the six members of the GCC.
Bukhdour said Kuwait's measure reflected difficulties faced by the alliance to achieve their target by 2010, especially after Oman had announced it will not be able to meet the target date.
tf.TFN-Europe_newsdesk@thomson.com
http://www.forbes.com/markets/feeds/afx/2007/05/20/afx3739653.html
afp/hjp
The oil-rich emirate had historically pegged the dinar to a basket of currencies before pegging it to the dollar in January 2003 in preparation for single currency in Gulf Cooperation Council states planned for 2010.
The value of the dinar immediately jumped from 289.14 fils to the dollar to 288.01 fils on the news. There are 1,000 fils in one Kuwaiti dinar.
Central Bank (other-otc: CHPA.PK - news - people ) governor Sheikh Salem Abdul Aziz al-Sabah said in a statement quoted by the state-run KUNA news agency that a sharp decline in the dollar's value had a negative impact on the Kuwaiti economy in the past two years.
Kuwaiti economist Hajjaj Bukhdour said the decision will help reduce 'imported inflation.'
Sheikh Salem reiterated Kuwait's commitment to plans for a single currency among the six members of the GCC.
Bukhdour said Kuwait's measure reflected difficulties faced by the alliance to achieve their target by 2010, especially after Oman had announced it will not be able to meet the target date.
tf.TFN-Europe_newsdesk@thomson.com
http://www.forbes.com/markets/feeds/afx/2007/05/20/afx3739653.html
afp/hjp
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