A Gulf Currency is looming and it may hasten the end of the US dollar as reserve currency may (hat tip to Marla Singer at ZeroHedge)
“The Gulf monetary union pact has come into effect,” said Kuwait’s finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait.
The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they amount to regional superpower with a GDP of $1.2 trillion (£739bn), some 40pc of the world’s proven oil reserves, and financial clout equal to that of China.[…]
“The single currency should come last. We need to coordinate our economic policies and build up common infrastructure as a first step,” [Khalid Bin Ahmad Al Kalifa, Bahrain’s foreign minister] said.
Mohammed El-Enein, chair of the energy and industry committee in Egypt’s parliament, said Europe’s example could help the Arab world achieve its half-century dream of a unified currency, but the task requires discipline. “We need exactly the same institutions as the EU has created. We need a commission, a court, and a bank,” he said.
Hats off to Person of the Year.