A One Currency Middle East

I was sitting at my workstation doing my routines at work peacefully when I overheard a conversation that two of my officemates had. They were talking about money. That was not uncommon, especially for us Filipinos who are trying very hard to make the most out of what is left of our salaries after we send our money to the Philippines. But something other than that caught my attention. They were talking about currencies of other gulf countries… countries like Saudi Arabia, Qatar, Oman, and Bahrain.

I decided to listen in, trying very hard to confirm the suspicions on my head. And when I finally heard one say something about one currency, it was more than enough for me bear. I twisted my seat to face the two people talking at the workstation just beside mine. I interrupted them, still trying to make sense out of the incoherent things that I’ve heard.

“Who’s going to have one currency?” I asked the guy who seemed to be the person who was spreading the news.

“The GCC countries, Saudi Arabia, UAE, Oman, Qatar, Bahrain, practically the richest countries in the middle east.”

“Really?!” I tried to hide my horror. “And when are they going to implement it?”

“Oh, you don’t know? The talks have been going on for a while. I have been here for four years and I’ve heard that rumor ever since. They are trying very hard to implement it this year but they don’t seem to agree with the name of the currency so they are estimating that it is going to be implemented next year,” my bubbly officemate replied.

“And that rumor resurfaced just recently?” I asked.

“Yeah, I guess so,” he replied.

“Oh,” was the only reply I could make.

“It is advantageous for us, you know,” another officemate said.

“And why would that be?” I questioned her almost forgetting that she doesn’t know what I know.

“You see, if they are going to combine their assets, naturally the exchange rate against the Peso would rise maybe to about thirty to forty Pesos per one dirham or riyal. Imagine the effect. We would earn the same but send our families in the Philippines more,” she replied.

“Yeah,” was all I could say. I could not agree with her because I knew the implications of this event. And at that moment, I wished I could tell them about it. But I knew that they just weren’t ready for it.

I didn’t realize that tears were building in my eyes until they were about to drop. So I calmed myself down and asked one more question to the person who was the source of the news.

“Where did you get all that?” I asked once more.

“It was in the Gulf News last night,” he replied.

“I see. I’m going to research on that.”

I abandoned the letter that I was making for the chairman of our company for a brief period. Whenever I get to be in such a panic, I simply couldn’t get a hold of myself until I know the truth behind the rumors. So I opened my internet browser immediately and typed Gulf News’ website at the address box. Searching for the news article only took a few seconds. I read them one by one.

And it was all there, all the things that my officemate told me was true. A one-currency Middle East is in the making and most probably, I would still be here when that happens. I shuddered at the thought of how close to the end we all are. Europe has done it and in less than a year, the Middle East would have one currency too. ‘Ring the alarm,’ I told myself. ‘This is not the time to be complacent. It’s only a matter of time before the rest of the world would follow.’

I leaned back, suddenly becoming serious of where my life was heading. ‘This is something I’ve got to share,’ I decided. So I made up my mind in an instant to write this, making it on top of the list of numerous topics I have been planning to write all along.

Here are the articles I found regarding the one currency Middle East:

Fact file: GCC Monetary Union
Gulf NewsPublished: May 20, 2009, 15:17

The Gulf Cooperation Council (GCC) countries – UAE, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain—have been planning a monetary union or a single currency between them for years. Here’s what you need to know about it.

What is it? The GCC Monetary Union has been set up to plan a single currency for member countries.

What makes the union important? The union would have combined the nations to form the fifth largest economy in the world.

Which countries have withdrawn from the monetary union? Oman pulled out in 2006. The UAE has withdrawn from the union as well.

What is the benefit of having a single GCC currency? GCC currency is expected to encourage trade and financial integration.

What is the latest? The single currency plan is still on track for 2010, but no decision has been made on the name of the common currency.

When did it start? GCC members agreed in 2003 to peg their currencies to the US dollar and to maintain the parity until the establishment of the GCC Monetary Union in 2010.

What is the GCC? It is a union established on May 25, 1981 with the aim of forging closer ties and stronger links among the six member states.

Who are the members? Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

Have members pegged their currencies to the US dollar? Yes, GCC members have done so, except Kuwait since May 2007.


UAE supportive of Gulf monetary union - Al Attiyah
ReutersPublished: May 18, 2009, 23:50

Manama: The UAE, which has expressed reservations over a decision to base the Gulf central bank in Saudi Arabia, has however upheld support for monetary union plans in the region, the GCC said on Sunday.

GCC Secretary-General Abdul Rahman Al Attiyah said the secretariat was urging Gulf states to meet a year-end deadline to ratify key monetary union agreements approved by the region's leaders in December.

"They are supportive," Al Attiyah said when asked about the UAE's reservations over the decision to base the joint central bank in Riyadh.

The UAE, among the major candidates to host the central bank, said after the May 5 decision it had 'reservations' but did not elaborate, leaving analysts to assume it would seek to use diplomatic clout to get other concessions in the future.

"I'm confident that the UAE and all the GCC ... in the integration programme have been always supportive," Al Attiyah said on the sidelines of a United Nations conference in Bahrain.

Gulf Arab states must ratify the monetary union deal before a Gulf monetary council, the first leg of the central bank, can start operations. They have until December 12 to enact the deal.

"We are following up with the member countries to ratify as soon as possible," Al Attiyah said. "The next step is that the monetary council will begin its work ... We have from now until the end of 2009."