Khaleeji (currency)
Encyclopedia
The Khaleeji was a proposed name for the common currency of the member states of the GCC or Cooperation Council for the Arab States of the Gulf
, except for Oman
, and the U.A.E.. The term 'Khaleeji' is Arabic for "of the Gulf", and is traditionally associated with the Arab states of the Persian Gulf
. The proposed name was turned down in late 2009, and no official name has been agreed as of yet. Although the name "Dinar
" ' onMouseout='HidePop("36178")' href="/topics/Latin">Latin
, dinarius) has been suggested since it is already used in the Arab world
and is mentioned in the Quran, it was at the time of the prophet Mohammed.
Since Islamic economic jurisprudence prohibits interest, or 'riba
,' there is speculation that the future GCC currency will be backed by gold. However, senior figures in the GCC administration have stated that the currency will likely be linked initially to the dollar . The Saudi central bank currently backs, with its full support, dollar linked currencies . Saudi Arabia has similarly rejected calls for the International Monetary Fund SDR to be used as a reserve currency. A further alternative is the use of a basket of currencies to serve as a peg to the GCC currency .
Riyadh
, Saudi Arabia
will host the GCC central bank for this common currency. This was decided earlier on May 5, 2009 at the GCC consultative summit held at the Daraeya Palace in Riyadh. The decision upset officials in the U.A.E. because they wanted to host the central bank, as they do not host any GCC establishments. As a result the Emirates dropped their interest in the currency and completely rejected being a part of it anymore.. Later (Nov. 23rd) statements by the UAE Central Bank Governor Sultan bin Nasser al-Suweidi state the greatest obstacle was the lack a precursor unit of account.
, Kuwait
, Bahrain
and Qatar
. Oman
and the United Arab Emirates
have announced that they will not adopt the new currency until further notice.
Originally slated for adoption in 2010, Nasser al-Kaud, deputy assistant general for economic affairs at the GCC, admitted on March 24, 2009, that the current deadline for establishment of the monetary union would not be met on time due to the financial crisis and a lack of sufficient cooperation between the GCC member states. Encouraging administrative signals positively indicate that the currency may launch in a few years time. These include:
The final issue date is still in question and ranges between 2013 and 2020.
Cooperation Council for the Arab States of the Gulf
The Cooperation Council for the Arab States of the Gulf , also known as the Gulf Cooperation Council , is a political and economic union of the Arab states bordering the Persian Gulf and constituting the Arabian Peninsula, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates...
, except for Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
, and the U.A.E.. The term 'Khaleeji' is Arabic for "of the Gulf", and is traditionally associated with the Arab states of the Persian Gulf
Arab states of the Persian Gulf
"Arab states of the Persian Gulf" or "Arab Persian Gulf states" or "Persian Gulf Arab states" or "Arabic Persian Gulf states" or "Arab States of The Gulf", are terms that refer to the six Arab states of Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain and Oman, bordering the Persian Gulf....
. The proposed name was turned down in late 2009, and no official name has been agreed as of yet. Although the name "Dinar
Dinar
The dinar is the official currency of several countries.The history of the dinar dates to the gold dinar, an early Islamic coin corresponding to the Byzantine denarius auri...
" ' onMouseout='HidePop("36178")' href="/topics/Latin">Latin
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...
, dinarius) has been suggested since it is already used in the Arab world
Arab world
The Arab world refers to Arabic-speaking states, territories and populations in North Africa, Western Asia and elsewhere.The standard definition of the Arab world comprises the 22 states and territories of the Arab League stretching from the Atlantic Ocean in the west to the Arabian Sea in the...
and is mentioned in the Quran, it was at the time of the prophet Mohammed.
Since Islamic economic jurisprudence prohibits interest, or 'riba
Riba
Riba means one of the senses of "usury" . Riba is forbidden in Islamic economic jurisprudence fiqh and considered as a major sin...
,' there is speculation that the future GCC currency will be backed by gold. However, senior figures in the GCC administration have stated that the currency will likely be linked initially to the dollar . The Saudi central bank currently backs, with its full support, dollar linked currencies . Saudi Arabia has similarly rejected calls for the International Monetary Fund SDR to be used as a reserve currency. A further alternative is the use of a basket of currencies to serve as a peg to the GCC currency .
Riyadh
Riyadh
Riyadh is the capital and largest city of Saudi Arabia. It is also the capital of Riyadh Province, and belongs to the historical regions of Najd and Al-Yamama. It is situated in the center of the Arabian Peninsula on a large plateau, and is home to 5,254,560 people, and the urban center of a...
, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
will host the GCC central bank for this common currency. This was decided earlier on May 5, 2009 at the GCC consultative summit held at the Daraeya Palace in Riyadh. The decision upset officials in the U.A.E. because they wanted to host the central bank, as they do not host any GCC establishments. As a result the Emirates dropped their interest in the currency and completely rejected being a part of it anymore.. Later (Nov. 23rd) statements by the UAE Central Bank Governor Sultan bin Nasser al-Suweidi state the greatest obstacle was the lack a precursor unit of account.
Adoption
The currency, if adopted, would be the sole legal tender in Saudi ArabiaSaudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
, Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
, Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
and Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
. Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
and the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
have announced that they will not adopt the new currency until further notice.
Originally slated for adoption in 2010, Nasser al-Kaud, deputy assistant general for economic affairs at the GCC, admitted on March 24, 2009, that the current deadline for establishment of the monetary union would not be met on time due to the financial crisis and a lack of sufficient cooperation between the GCC member states. Encouraging administrative signals positively indicate that the currency may launch in a few years time. These include:
- The halting of the loans from the central banks of the four concerned countries to the public sector ,
- The convergence of government law and policy in the financial sector .
The final issue date is still in question and ranges between 2013 and 2020.
See also
- EuroEuroThe euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
, the European UnionEuropean UnionThe European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
's common currency - Amero, proposed North American currency union
- AfroAfro (currency)The African Monetary Union is the proposed creation of an economic and monetary union for the countries of the African Union, administered by the African Central Bank...
, proposed currency for the African UnionAfrican UnionThe African Union is a union consisting of 54 African states. The only all-African state not in the AU is Morocco. Established on 9 July 2002, the AU was formed as a successor to the Organisation of African Unity... - EcoEco (currency)The Eco is the proposed name for the common currency that the West African Monetary Zone plans to introduce in the framework of ECOWAS. Originally the introduction of the currency was planned for December 1, 2009, however this date was revised to 2015. The original five member states are the...
, another attempt at an African common currency, within the ECOWAS community. - The West African CFA francWest African CFA francThe West African CFA franc is the currency of eight independent states in West Africa: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Sénégal and Togo. The acronym CFA stands for Communauté financière d'Afrique...
and Central African CFA francCentral African CFA francThe Central African CFA franc is the currency of six independent states in central Africa, Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon. CFA stands for Coopération financière en Afrique centrale...
(C.F.A.), both of which are existing currency unions in Africa - The Asian Monetary UnitAsian Monetary UnitAsian Monetary Unit is a basket of currencies proposed by the Japanese government's Research Institute of Economy, Trade and Industry . It is similar to the now-defunct European Currency Unit .-AMU baskets:...
, between ASEAN, China, Japan, and South Korea - Monetary union