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Qatar: Unpeg the Gulf Currency from the US Dollar

Qatari Ali Al Jaber has formed a Facebook group entitled Unpeg the new Gulf currency from the dollar (Peg it to gold).

3 comments

  • As oil is the only commodity in the world
    that is large enough for gold to hide in,
    pegging to gold means pegging to oil.
    Hence,
    oil is the Gulf single currency
    http://bphouse.com/honest_money/gold-and-oil/

  • Monetary union has in many ways become more urgent as Gulf states face the worst global financial crisis in 80 years and oil prices collapse nearly $100 a barrel since a peak last July. (1)

    The transformation of the yuan into a global currency has begun. It will not be an overnight change, but the change may take place faster than expected. The economic crisis has provided China with a window of opportunity to leverage its relative stability and status as a trade surplus country to extend yuan credit to deficit countries globally. (2)

    (1)
    Gulf central bankers meet amid FX union hurdles
    Muscat: 44 minutes ago
    http://www.tradearabia.com/news/newsdetails.asp?Sn=BANK&artid=159168

    (2)
    China’s Yuan Ambitions
    Currency swap agreements are part of a larger plan to extend the Chinese currency’s role in global trade.OPINION ASIA
    APRIL 5, 2009, 7:43 P.M. ET
    By BEN SIMPFENDORFER | From today’s Wall Street Journal Asia.
    http://online.wsj.com/article/SB123896247802990483.html

  • Once they will have decided on the location of the Gulf Central bank,
    they will decide
    whether to peg the Khaleeji to the dollar
    or to peg it to (gold hiding in) oil.

    Gulf states not agreed on central bank, Oman says
    Mon Apr 6, 2009 5:43am EDT
    http://www.reuters.com/article/usDollarRpt/idUSL653692720090406
    MUSCAT, April 6 (Reuters) – Central bankers from the six-nation Gulf Cooperation Council have not reached agreement on the location of a common central bank to be used in plans for monetary union, Oman’s central bank head said on Monday.
    “A signature is still not there on the agreement because there is still no agreement on the location and currency of the central bank,” Central Bank Executive President Hamood Sangour al-Zadjali told reporters.
    GCC rulers were likely to meet in May to discuss the location for a common central bank, he said. After a location was decided, policymakers would decide whether the currency would be pegged to the U.S. dollar, he said.
    (Reporting by Andrew Hammond and Saleh al-Shaibany, writing by Thomas Atkins, editing by Sam Cage)

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