GCC common currency reports 'false'

The Gulf Monetary Council has denied media reports that it had set a date to launch a common currency by the end of the year.

"The Monetary Council affirms that the reports by some newspapers and websites over the date of the issuing of the single Gulf currency are completely false, not based on accurate information nor reliable sources," the council said in a statement carried in Kuwait news agency KUNA.

Earlier this week, reports suggested four members of the Gulf Cooperation Council (GCC) - Saudi Arabia, Kuwait, Qatar and Bahrain - would announce a single currency linked to the dollar by the end of the year.

The GCC has been discussing a common currency for more than 15 years, with the proposal gaining traction following a successful implementation of the Euro in the early 2000s.

However, Oman opted out of the plan in 2006 and the UAE pulled out in 2009.

The Monetary Council is mandated with placing regulations for the establishment of the Gulf Central Bank and completing the establishment of the Monetary Union.

The leaders of the six GCC countries are set to hold summit talks in Kuwait on December 10-11.

UNLIKELY

The Wall Street Journal reported analysts are skeptical of the move happening anytime soon.

“We think it unlikely that a common Gulf currency could be adopted in the near term, despite strong political support for the idea,” an analyst at Dubai-based Emirates NBD said in a client note, Wall Street Journal reported.

A European Central Bank (ECB) official said the GCC should not adopt a common currency before a clear common objective was set, Gulf News reported.

Yves Mersch, an executive board member of the ECB, reportedly said no union of states would be ready for a common currency without political consensus.