The link with Gulf currencies and the dollar is tied to the question on monetary union. Oman, for example, has said it would not join the single currency and Kuwait has dropped its peg to the dollar.
Tuesday, 10 June 2008
Gulf Cooperation Coucil and Monetary Union
Gulf Arab central bankers in Qatar approved a draft agreement for monetary union which they hope will set the nucleus of a regional central bank and ultimately currency. The agreement will be reviewed by finance ministers will look at it on Septempet 17th in Jeddah. The Gulf Cooperation Coucil includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman. Oman has opted not to join monetary union. The plan may see a single currency a early as 2010.