The GCC Monetary Union: Some Considerations for the Exchange Rate Regime
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
We compare the dollar peg to a dollar-euro basket peg as alternative exchange rate regimes for the incipient Gulf Cooperation Council (GCC) currency union. Quantitative evidence suggests basket peg does not dominate dollar peg for improving external stability. However, as GCC exports and external financial assets become more diversified, a more flexible exchange policy may be necessary for competitiveness and stability. Pegging the prospective common GCC currency to a basket, like the dollar-euro basket, may provide a conservative transitional strategy toward a more flexible exchange rate policy.
Series:
Working Paper No. 2003/066
Subject:
Conventional peg Currencies Exchange rate arrangements Exchange rate flexibility Exchange rates Foreign exchange Money
English
Publication Date:
April 1, 2003
ISBN/ISSN:
9781451848816/1018-5941
Stock No:
WPIEA0662003
Pages:
25
Please address any questions about this title to publications@imf.org