Monetary Union in the Gulf: Prospects for a Single Currency in the Arabian Peninsula [Paperback]

At a time of momentous shifts in the balance of world economic forces epitomized by the current oil price boom, the weakening US dollar and the global credit crunch; the meteoric rise of the Arabian peninsula cannot be understated. Neither, therefore, can their planned monetary union. As key suppliers of the worlds oil and gas the Gulf states have accumulated vast wealth: taken together their sovereign wealth funds are by far the worlds largest and the influence of these funds is becoming increasingly apparent. This book provides a thorough analysis of the scheduled 2010 monetary union. Its findings are based on both primary research and a detailed empirical analysis of the regions economies spanning 1980-2006. It assesses the region against Optimal Currency Area criteria, the European Criteria, highlights outstanding preparations and considers the underlying economic and political factors that may aid or indeed delay the launch date. Critically this book argues that the present dollar-peg exchange rate regimes are no longer optimal. The future Gulf dinar is likely to seek a more independent path. The ramifications of this - a potential Islamic anchor currency and an alternative oil-invoicing currency - are also considered in some detail.

This book examines the proposed currency union of the Gulf Co-operation Council (GCC)  Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates  which is due to come into effect in 2010.

Emilie Rutledge's new book, Monetary Union in the Gulf: prospects for a single currency in the Arabian Peninsula is the first systematic, book-length treatment of the case for and against monetary union among the members of the Gulf Cooperation Council. It redefines the field of exchange rate economics for the Gulf states and raises the debate to a new and higher level. The book is as excellent as it is timely. Each of the GCC members is engaged in an evaluation ofló&