Let every GCC bank issue its own currency.

The project of instituting the Gulf Monetary Union among the six (save Oman which says it will not participate in the single currency?) Gulf Co-operation Council (GCC) countries is being delayed by disagreement on where to locate the Gulf Monetary Council (GMC), the precursor to the Gulf Central Bank (GCB).

Monetary Union does however not need institutions.

The very notion of central banking should be dismissed/disregarded
and
banks should be given again the right to issue receipts for the gold they hold in reserve.

Banks used to have the right to issue receipts for the gold they held in reserve.
This right was taken away from them by the institution of central banks.
(Roland Leuschel and Claus Vogt, “Das Greenspan Dossier, Wie die US-Notenbank das Weltwährungssystem gefährdet. Oder: Inflation um jeden Preis”, www.finanzbuchverlag.de, 2006, 3rd ed., p. 299)

No necessity for a bureaucracy like a central bank.

But some even want the Khaleeji, the GCC single currency, to be pegged to the US of A dollar.

Various summits have reiterated the GCC’s determination to proceed with the union. (EB FILE)
Nadim Kawach  on Tuesday, April 07, 2009
http://www.business24-7.ae/Articles/2009/4/Pages/06042009/04072009_8f5127aefb6d4e60ba50539a7300f1e6.aspx
SNIPS
A widening rift over hosting the proposed Gulf Central Bank is obstructing plans by regional oil producers to launch a landmark monetary union on time, a Saudi investment fund said yesterday.
But NCB Capital, an offshoot of the Saudi National Commercial Bank, said it believed there is a political resolve by the six Gulf Cooperation Council (GCC) states to push ahead with the project to launch the world’s second currency union and cap nearly 30 years of an economic integration process.widening rift over hosting t currency union and cap nearly 30 years of an economic integration process.
+
“In some ways, the delay may be positive, not least because recent weeks have triggered renewed discussion that even Kuwait might restore its DOLLAR PEG. The Kuwaiti authorities opted for pegging dinar to a basket of currencies in 2007 to gain greater monetary policy flexibility in the face of the mounting inflationary pressures,” the study said. UNSNIP

Let every GCC bank issue its own currency.
Let each bank manage its currency.
And the market will decide whether the winning currency will be pegged to the US of A dollar or to (gold hiding in) oil

A single currency representing a region that holds almost half of the world’s energy resources would be globally prominent. It will be a currency in demand as it will represent the region’s natural wealth and it will de facto become a reserve currency. Though this will strengthen the profile of the GCC countries, it will also burden them with the task of managing the currency extremely cautiously.
(EDITORIAL
Khaleej Times Online >> News >> EDITORIAL
Monetary Union, One Step At a Time
8 April 2009
http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/editorial/2009/April/editorial_April16.xml&section=editorial&col=

Ivo Cerckel
ivocerckel@siquijor.ws