Middle East Economic Survey


No 21


UAE Makes Abrupt Exit From GCC Monetary Union

The UAE made a surprise and abrupt exit from the GCC currency union last week. It cited the 5 May decision by the Gulf heads of state to base the GCCs central bank in Riyadh rather than in one of the emirates as the reason for its move. It is unclear at present whether the exit is being used as a bargaining chip to reverse this decision or marks a lasting shift in currency policy. UAE Foreign...