Khaleeji

[annovi.frizio]

my proposition.. :-)



here other images...

http://www.webalice.it/annovi.frizio/p_eurofantasy24.html

regards..

 B)

[Figleaf]

Congratulations, Frizio! This is great fun. I am not sure if we will ever see a Gulf currency, but if there is one, I hope it will look like your design.

Peter

[annovi.frizio]

ok, thank you. this is for me a graphic exercise..

if you have news more about this gulf currency write here or to me. thank you and sorry my english  :-)

[chrisild]

That "common side" design looks interesting, and so do the four "national sides" that you designed. (As for the globe, well, the "Khaleeji" or "Gulfo" or whatever is currently a project of those four only, so maybe the "map" should focus on that geographic area ...) Cannot tell whether the designs are OK from the point of view of somebody who lives there, but I like them.

Whether that common currency ever comes, who knows. If people perceive it as a "Greater Saudi Arabia" project, it may not be welcome. At the GCC summit in Kuwait, about two weeks ago, this monetary union was discussed too - seems that the four will set up a monetary council (early 2010) which will later become a central bank which will later issue a Gulf currency. So forget about the "2010" date on your designs.

Christian

[annovi.frizio]

interessant, thank you... 

[annovi.frizio]

news about this currency proyect ?

[chrisild]

Nothing that I am aware of. Now that does, by it self, not really mean much but it seems that the dollar peg is there to stay. See the last part of this article where it says: "The GCC's exchange rate pegs to the US dollar and is expected to remain unchanged over the next couple of years (with Kuwait retaining its peg to a dollar heavy basket of currencies)." The entire report is here (PDF) by the way, in case anybody is interested in further details. Sure, that is the view of one bank group only, but I doubt that the views of the GCC governments differ significantly from that view ...

Christian

[Figleaf]

My view is somewhat different. If you peg your currency to another, the peg will eventually break, unless you make sure that your inflation rate resembles that of the country whose currency you are pegged with. In the case of the US, I expect a short period of very moderate inflation (say 0-1%), due to low growth, followed by a sharp increase (say 5%) as the economy picks up and the economy is awash with money from the bank support effort. For Kuwait and similar countries, I expect a steady pattern of inflation (say around 2-3%), as money supply is fed by the oil price, but there's not much to spend it on domestically, so it's mainly invested abroad. In other words, this peg will needlessly start dragging the Kuwaiti and other currencies down to the point where it will break.

I don't think the currency union will come about any time soon either, since I don't see these countries agreeing on a common central bank.

Peter