two snippets
Posted by Ivo Cerckel on December 30th, 2008
Tue, 30 Dec 2008 | 11:13 GMT
GCC monetary union agreement ready for leaders’ signature – Al-Shimali
KUNA (Kuwait News Agency)
http://www.zawya.com/Story.cfm/sidZAWYA20081230104902/GCC%20Monetary%20Union%20Deal%20To%20Take%20Force%20By%20Dec%20%2709
SNIP
MUSCAT: Finance and Economy Ministers of six Arab Gulf countries have completed the final formula of the GCC monetary union and referred it to their leaders to sign it, Kuwait finance minister Mustafa Al-Shimali said Tuesday.
“We have discussed the final draft of the monetary union agreement thus paving way for (GCC leaders to) signing it to see the light at a maximum date of December 12, 2009,” Al-Shimali told KUNA after meeting with finance and economy ministers of the Gulf Cooperation Council (GCC).
The monetary union is expected to pave way for the single currency.
Al-Shimali said the ministers have also approved the statute of the monetary council, to be followed by the creation of the Gulf central bank, and was also referred for the GCC leaders for approval.
The creation of the central bank will be mandated with establishing the single currency.
But, Al-Shimali noted, the single currency would be dealt with at a later stage because it has unique legal status. He did not elaborate.
China to experiment with trade settlement in yuan
http://ph.news.yahoo.com/rtrs/20081224/tbs-china-economy-exports-21231dd.html
SNIP
BEIJING, Dec 24 – China on Wednesday took a baby step on the road to making the yuan an international currency when it promised to allow its use in trade between a few provinces and neighbouring states.
The State Council, or cabinet, said the yuan could be used for the settlement of trade between the factory-rich Pearl River and Yangtze River Deltas and the Chinese territories of Hong Kong and Macau.
It also said that members of the Association of Southeast Asian Nations would be permitted to use yuan in their trade with China’s southeastern provinces of Guangxi and Yunnan.
No related posts.
December 30th, 2008 at 20:12
“The unified currency is considered a next stage and has its own timetable,” al-Shimali said.
Summit host Oman has repeatedly said it will not join in the unified currency, saying the step was not necessary at this time and required greater planning.
( Gaza dominates Gulf leaders summit
By SAEED EL-NAHDY and TAREK EL-TABLAWY – 45 minutes ago
http://www.google.com/hostednews/ap/article/ALeqM5gqUOAC84bWs05-NuIcC70S1lqsyQD95D0EV00 )
December 30th, 2008 at 20:36
It is still unclear when single currency notes and coins would be issued or where the central bank would be located, another decision that could be made by Gulf leaders on Tuesday.
(UPDATE 1-Gulf states must enact FX agreement by end-09 -Kuwait
Tue Dec 30, 2008 4:18pm IST
http://in.reuters.com/article/asiaCompanyAndMarkets/idINLU14744020081230?sp=true )
December 30th, 2008 at 20:53
As has been argued before, a single currency backed by oil and other financial resources of the GCC has the potential to become a strong, stable currency. http://www.gulfnews.com/opinion/columns/business/10271058.html
There is a need to establish a mechanism for stability in oil prices, in a way that it would not burden the consumer … and not harm the producing countries, while it allows their development plans to continue,” the Omani Sultan told the Gulf leaders.
http://news.xinhuanet.com/english/2008-12/30/content_10577973.htm
Iran tries to receive its oil income in euros to avoid oversight by the US authorities, which could block the Islamic regimeÂ’s money over the controversial nuclear programme and alleged funding of terrorism.
Experts estimate that about two-thirds of the countryÂ’s $80bn foreign currency reserves are now held in euros, and government opponents have complained of a loss of about $5bn due to the European currencyÂ’s recent decline against the dollar.
http://www.ft.com/cms/s/0/33566dd4-d5c0-11dd-a9cc-000077b07658.html
December 30th, 2008 at 20:59
Kuwait’s finance minister said Gulf Arab states will have until Dec. 12 next year to enact a monetary union agreement once approved by the rulers at the meeting in the Omani capital.
The union would enable GCC countries, most of whom peg their currencies to the U.S. dollar, to have the option of adopting a more flexible foreign exchange regime, facilitate trade and shield their economies against global pressure.
(Gulf Arabs to agree fiscal unity,cbank HQ in doubt
Tue Dec 30, 2008 7:36am EST
http://www.reuters.com/article/marketsNews/idUSLU14284720081230 )
December 30th, 2008 at 21:20
To repeat:
There is indeed a distinction between Gulf Monetary Union and Gulf single currency.
In other words,
monetary union does not equate single currency.
Dec 2009 deadline for Gulf monetary union
by John Irish on Tuesday, 30 December 2008
http://www.arabianbusiness.com/542340-dec-2009-deadline-for-gulf-monetary-union
SNIPS
Gulf nations will have until Dec. 12 next year to enact a monetary union agreement once it is approved by heads of state, Kuwait’s finance minister said in remarks carried by the state news agency on Tuesday.
+
It is still unclear when single currency notes and coins would be issued or where the central bank would be located, another decision that could be made by Gulf leaders on Tuesday. (Reuters)
December 30th, 2008 at 21:45
“The monetary union has been approved. They have not decided the location (of the common central bank), hopefully within the next five months,” Naser al-Kaud, deputy assistant secretary-general of the GCC secretariat told Reuters after the summit.
http://asia.news.yahoo.com/081230/3/3u4wu.html
http://www.reuters.com/article/usDollarRpt/idUSLU15337620081230