The GCC nations decided to make a uniform currency in 2005. The finance minister also said that they had not yet finalised the name of the currency. According to a study conducted by the Dubai-based Gulf Research Center (GRC), the new GCC currency will be the world’s most important currency union after the euro.
“The GCC currency will have far-reaching implications, including a big boost to inter-GCC trade, and could help the region’s countries diversify their economic base away from hydrocarbons,” said the study
“The relevance of the currency is not only because it will be the single currency of an economic bloc that has a GDP of $ 388 billion and controls 45 percent of the world’s known oil reserves, but also because currency unions invariably increase the levels of intraregional trade,” it said.
Once established, the GCC leadership may decide to invoice their hydrocarbon sales in the new common currency, moving away from the current dollar pricing system.
