Middle East Economic Survey

VOL. XLVIII

No 38

19-September-2005

REGIONAL

GCC Central Banks Agree Terms For Currency Union

Central bankers of the GCC states meeting in Bahrain on 14 September agreed terms for the regional currency union planned to come into effect in 2010. Progress towards this goal has so far been slow, but all six currencies are now pegged to the dollar in preparation for the union. We have agreed upon a formula to calculate the interest rate and that general budget deficits do...