Experts embrace a currency union

The ITP Arabian Banking and Finance GCC Currency Forum 08, 15th June, outcome expressed strong support of a currency union.

Dr.Armen V.Papazian, Senior Vice President DIFX said,

"The GCC common currency, exchange rate regimes and levels, inflation policy, and the unique monetary and fiscal architecture of Gulf States are very important topics for the UAE and the region. A timely event that facilitated very interesting discussions."

In a joint presentation, Mr. Russell Krueger, on leave from the International Monetary Fund, and Mr. Erwin Nierop, Senior Official from the European Central Bank, focused on the efforts in many regions to create currency unions. They spoke about how the economies of the countries joining the union could be affected, the legal framework, and the process of changeover.

Many lessons can be learned from the experiences of the European Monetary Union, but each union - including in the Gulf - will need to adjust the plan to reflect its own circumstances, institutions, and policies. The recent announcement of the GCC that a Monetary Council will be set up appears to be an important step in this process.

"An impressive line up of speakers at the GCC Currency Forum 08 raised expert debate about the economic and banking developments required to converge the currencies" said, Allard Marx, Managing Director INCIDE, the consulting firm that registered a world currency sign in 2002. He emphasised on the implementation and acceptance of such a major change and to show how the process could be helped by visualising an outcome ahead of time.

Ahmed Mohammed Ahmed Al Bahar, Vice Chairman & Managing Director of Gulf Custody Company, Kuwait, main sponsor said, "Gulf Custody Company is proud to be associated with this innovative "GCC Currency Forum". Exhibitor Partner Mayfair Pacific Asset Management said "With the monetary unification in the GCC, Mayfair believes that this will not only strengthen but equally promote and expedite growth into the region."

GCC Currency Forum 08 is supported by the Securities and Commodities Authority, UAE Financial Markets Association, Gulf Research Centre. IFIS, Nooz, CEO, Arabian Business, and Al Bayan are the event's media partner.