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The '''Khaleeji''' ({{lang-ar|خليجي}} ) was a proposed name for the [[common currency]] of the member states of the GCC or [[Cooperation Council for the Arab States of the Gulf]], except for [[Oman]], and the [[U.A.E.]]. The term 'Khaleeji' is Arabic for "of the Gulf", and is traditionally associated with the [[Arab states of the Persian Gulf]]. The proposed name was turned down <ref>http://www.tradearabia.com/news/newsdetails.asp?Sn=ECO&artid=171926</ref> in late 2009, and no official name has been agreed as of yet. Although the name "Dinar" ({{lang-ar|دينار}}) has been suggested since it is already used in the [[Arab world]] and is mentioned in the [[Quran]], it was at the time of the prophet [[Mohammed]].
The '''Khaleeji''' ({{lang-ar|خليجي}} ) was a proposed name for the [[common currency]] of the member states of the GCC or [[Cooperation Council for the Arab States of the Gulf]], except for [[Oman]], and the [[U.A.E.]]. The term 'Khaleeji' is Arabic for "of the Gulf", and is traditionally associated with the [[Arab states of the Persian Gulf]]. The proposed name was turned down <ref>http://www.tradearabia.com/news/newsdetails.asp?Sn=ECO&artid=171926</ref> in late 2009, and no official name has been agreed as of yet. Although the name "[[Dinar]]" ({{lang-ar|دينار}}) has been suggested since it is already used in the [[Arab world]] and is mentioned in the [[Quran]], it was at the time of the prophet [[Mohammed]].


Since [[Islamic economic jurisprudence]] prohibits interest, or '[[riba]],' there is speculation that the future GCC currency will be backed by gold.<ref>[http://blog.cyrrion.com/?p=8 New Gulf currency ‘Khaleeji’ poised to be Gold backed to remove ‘Riba’]</ref> However, senior figures in the GCC administration have stated that the currency will likely be linked initially to the dollar <ref>http://www.opalesque.com/Commodities_Briefing/?p=107632</ref>. The Saudi central bank currently backs, with its full support, dollar linked currencies <ref>http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=111750</ref>. Saudi Arabia has similarly rejected calls for the International Monetary Fund SDR to be used as a reserve currency. A further alternative is the use of a basket of currencies to serve as a peg to the GCC currency <ref>http://tripolipost.com/articledetail.asp?c=1&i=3783</ref>.
Since [[Islamic economic jurisprudence]] prohibits interest, or '[[riba]],' there is speculation that the future GCC currency will be backed by gold.<ref>[http://blog.cyrrion.com/?p=8 New Gulf currency ‘Khaleeji’ poised to be Gold backed to remove ‘Riba’]</ref> However, senior figures in the GCC administration have stated that the currency will likely be linked initially to the dollar <ref>http://www.opalesque.com/Commodities_Briefing/?p=107632</ref>. The Saudi central bank currently backs, with its full support, dollar linked currencies <ref>http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=111750</ref>. Saudi Arabia has similarly rejected calls for the International Monetary Fund SDR to be used as a reserve currency. A further alternative is the use of a basket of currencies to serve as a peg to the GCC currency <ref>http://tripolipost.com/articledetail.asp?c=1&i=3783</ref>.

Revision as of 03:21, 11 March 2011

The Khaleeji (Template:Lang-ar ) was a proposed name for the common currency of the member states of the GCC or Cooperation Council for the Arab States of the Gulf, except for Oman, and the U.A.E.. The term 'Khaleeji' is Arabic for "of the Gulf", and is traditionally associated with the Arab states of the Persian Gulf. The proposed name was turned down [1] in late 2009, and no official name has been agreed as of yet. Although the name "Dinar" (Template:Lang-ar) has been suggested since it is already used in the Arab world and is mentioned in the Quran, it was at the time of the prophet Mohammed.

Since Islamic economic jurisprudence prohibits interest, or 'riba,' there is speculation that the future GCC currency will be backed by gold.[2] However, senior figures in the GCC administration have stated that the currency will likely be linked initially to the dollar [3]. The Saudi central bank currently backs, with its full support, dollar linked currencies [4]. Saudi Arabia has similarly rejected calls for the International Monetary Fund SDR to be used as a reserve currency. A further alternative is the use of a basket of currencies to serve as a peg to the GCC currency [5].

Riyadh, Saudi Arabia will host the GCC central bank for this common currency. This was decided earlier on May 5, 2009 at the GCC consultative summit held at the Daraeya Palace in Riyadh.[6][7] The decision upset officials in the U.A.E. because they wanted to host the central bank, as they do not host any GCC establishments. As a result the Emirates dropped their interest in the currency and completely rejected being a part of it anymore.[8]. Later (Nov. 23rd) statements by the UAE Central Bank Governor Sultan bin Nasser al-Suweidi state the greatest obstacle was the lack a precursor unit of account.[9]

Adoption

The currency, if adopted, would be the sole legal tender in Saudi Arabia, Kuwait, Bahrain and Qatar. Oman and the United Arab Emirates have announced that they will not adopt the new currency until further notice.

Originally slated for adoption in 2010, Nasser al-Kaud, deputy assistant general for economic affairs at the GCC, admitted on March 24, 2009, that the current deadline for establishment of the monetary union would not be met on time due to the financial crisis and a lack of sufficient cooperation between the GCC member states.[10] Encouraging administrative signals positively indicate that the currency may launch in a few years time. These include:

  • The halting of the loans from the central banks of the four concerned countries to the public sector [11],
  • The convergence of government law and policy in the financial sector [12].

The final issue date is still in question and ranges between 2013[13] and 2020[14].

See also

References

  1. ^ http://www.tradearabia.com/news/newsdetails.asp?Sn=ECO&artid=171926
  2. ^ New Gulf currency ‘Khaleeji’ poised to be Gold backed to remove ‘Riba’
  3. ^ http://www.opalesque.com/Commodities_Briefing/?p=107632
  4. ^ http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=111750
  5. ^ http://tripolipost.com/articledetail.asp?c=1&i=3783
  6. ^ http://www.arabnews.com/?page=1&section=0&article=122264&d=6&m=5&y=2009
  7. ^ http://www.gulfnews.com/business/Banking_and_Finance/10311041.html
  8. ^ http://www.gulfnews.com/business/Banking_and_Finance/10315315.html
  9. ^ Gulf Monetary Union Plans in Jeopard, Dec 17th 2009
  10. ^ Deadline for Gulf currency union extended
  11. ^ http://www.thepeninsulaqatar.com/Display_news.asp?section=Local_News&subsection=Qatar%20News&month=January2010&file=Local_News2010010321159.xml
  12. ^ http://www.business24-7.ae/banking-finance/banking/four-gcc-members-seek-unified-bank-laws-2010-03-09-1.65650
  13. ^ www.dunatv.hu Template:Hu icon
  14. ^ http://www.arabianbusiness.com/575538-kuwait-sees-gcc-currency-union-taking-up-to-10-years


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