Kuwait calls for monetary union delay

Kuwait calls for monetary union delay

Oct 11, 2009 at 21:56

DUBAI - Kuwait's finance ministry called on Sunday for a new launch date for the Gulf Cooperation Council, or GCC, states' planned single currency, previously set for January 2010.


The date for launching the currency should be reconsidered to allow technical committees to finish their work on the project, the finance ministry said in a statement carried by the official Kuwait News Agency, or Kuna.


The ministry reiterated its support to the single currency, Kuna reports.


Saudi Arabia, Kuwait, Qatar and Bahrain have signed agreements for launching a monetary union that will pave the way for a single currency, a project that has been delayed several times.


The plan was thrown into disarray this year, with the United Arab Emirates, the second-largest Gulf Arab economy, pulling out of the agreement after Saudi Arabia was chosen as the base for a joint central bank.


The U.A.E. is the second country to stay outside the project after Oman pulled out in 2007.


Kuwait complicated plans to launch the currency in 2007 by de-pegging the dinar from the U.S. dollar and switching to a basket of currencies in order to fight inflation. All other Gulf states link their currencies to the greenback.


Analysts and Gulf policy-makers have said the 2010 target date is too ambitious for the Gulf Arab states, who have yet to ratify the monetary union agreements.


Only one of the four Gulf Arab countries have ratified the monetary union agreements, which can't go into effect until full ratification from all four states is received, a senior official from the Gulf Cooperation Council general secretariat said last month.


Kuwait's Cabinet has approved the agreement and currently awaits parliament's stamp, the finance ministry said.

BUTTTTTT ON MONDAY...LOL

Kuwait vows support for GCC currency union

Oct 12, 2009 at 05:56

DUBAI - Kuwait retracted Monday statements calling for a delay in the launch of a single Gulf Cooperation Council currency, which has been set for January 2010, the state-run Kuwait News Agency reported, citing a finance ministry official.

Kuwait confirms its support to launching the unified currency on the assigned date of January 2010, Khalifah Hamada, undersecretary of the finance ministry told KUNA Monday.

KUNA cited Kuwait's finance ministry Sunday saying the launch date for the currency should be reconsidered to allow technical committees to conclude their work.

Kuwait is keen to work with the other Gulf Arab states involved in the project to speed up all matters relating to the launch of the single currency on time, Hamada told the agency.

Gulf policymakers and analysts have cast doubt about the ability of the Gulf states to launch the unified currency in 2010, a project that has been delayed several times.

Saudi Arabia, Qatar, Bahrain and Kuwait have signed monetary union agreements that will pave the way for the currency's start. The agreements won't go into effect until they are ratified by all four countries.

The United Arab Emirates, the region's second-largest economy, pulled out of the project this year after Saudi Arabia was chosen as a base for a joint Central Bank.

The UAE is the second country to stay out of the deal after Oman.

Kuwait complicated plans for the single currency by de-pegging the dinar from the U.S. dollar in 2007 and switching to a basket of currencies.

All other Gulf Arab states still link their currencies to the greenback.