The issue of regional currency unification Essay - 3

The issue of regional currency unification - Essay lessonIn the recent past, the world has witnessed an increasing interest in economic integration and currency unification among countries in specific regions. The idea of currency unification is not new and can be dated back to 1961 when Mundell coined the concept of Optimum Currency Areas (OCA) as noted by . Currency unification has been angiotensin converting enzyme of the key ambitions of the Gulf Cooperation council (GCC) countries. Soon after the formation of GCC, the regions goal for the formation of unified currency system was adopted in the clause 22 of the councils unified economic agreement of June 1982, which states thatThe member states shall seek to coordinate their financial, monetary, and banking policies and enhance cooperation between monetary agencies and central bank, including an attempt tom present a common currency in order tom further their desired economic integration . assert that the European economic an d monetary wedding (EMU) model of 1999 which set the pace for the adoption of Euro by eleven countries as well as the continuing efforts by the GCC member states to integ treasure their economies have contributed to bring up this ambition a new. It is worth noting at this point that the remarkable convergence of the exchange rate policies adhered in the GCC countries pegs to the US dollar. In accordance to exchange rate arrangement formally reported to the IMF, only the rial Oman is pegged to the dollar.