The rich oil exporters country, Saudi Arabia, Kuwait, Bahrain and Qatar, have agreed to launch a single currency which hope hope to displace the US Dollar as the pricing currency for oil. The four nations will launch the first phase next year by creating Gulf Monetary Council that will pave the way for a full-fledged regional central bank. The decision to launch the Council next year comes at a time when the dollar is struggling with its stature as the world’s currency.
The single currency dubbed ‘Gulfo’, inspired by Europe’s monetary union and widely regarded as a success across the Gulf states. With the introduction of single currency, it is expected to increase trade volume and financial integration, facilitate foreign direct investment, and create the right conditions for the development of the Gulf region into an optimum currency area.