Nexus - 1604 - New Times Magazine-pages

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Essentially, according to the author, the solution lies in regional currencies. According to a Bloomberg report, in October 2008 "European Central Bank council member Ewald Nowotny said a ‘tri-polar'’ global currency system is developing between Asia, Europe and the US and that he's skeptical the US dollar's centrality can be revived". Essentially, according to the author, the solution lies In June 2008, it was reported that "Gulf Arab central in regional currencies. According to a Bloomberg bankers agreed to create the nucleus of a joint central report, in October 2008 "European Central Bank bank next year in a major step forward for monetary council member Ewald Nowotny said a ‘tri-polar’ union but signaled that a new common currency global currency system is developing between Asia, — would not be in circulation by an agreed 2010 target".”” Europe and the US and that he's skeptical the US n 2002, it was announced that the "Gulf states say dollar's centrality can be revived".° hey are seeking advice from the European Central Bank on their monetary union programme". In The Union of South American Nations February 2008, Oman announced that it would not be The Union of South American Nations (UNASUR) joining the monetary union. In November 2008, it was was established on 23 May 2008, with the reported that the "[{flinal monetary union draft says headquarters to be in Ecuador, the South American the] Gulf central bank will be independent from Parliament to be in Bolivia, and the Bank of the South — governments of member states”."! to be in Venezuela. The BBC reported: "The leaders of In March 2009, it was reported: "The GCC should not 12 South American nations have formed a regional rush into forming a single currency as member states body aimed at boosting economic need to work out the framework for a and political integration in the regional central bank, Saudi Arabia's region... The Unasur members are Central Bank Governor Muhammad Argentina, Bolivia, Brazil, Chile, Al Jasser said..." Al Jasser was Colombia, Ecuador, Guyana, " quoted as saying: “It took the Paraguay, Peru, Suriname, Uruguay The GCC European Union 45 years to put and Venezuela."’ [Gulf Cooperation together a single currency. The week following the ; We should not rush." In 2008, with announcement of the Union, it was Council] should the global financial crisis, new pened razon presente | not rush into | problems were pose forthe Go American nations will seek a forming a single year on the GCC members to drop common currency as part of the currency as their currency pegs as inflation region's integration efforts following accelerated above 10 per cent in five member states need to work out the framework for a regional central bank..." of the six countries. All of the member states except Kuwait peg their currencies to the dollar and tend to follow the US Federal Reserve when setting interest rates." the creation of the Union of South American Nations...". He was quoted as saying: "We are proceeding so as, in the future, we have a common central bank and a common currency."® An Asian Monetary Union In 1997, the Brookings Institution, a prominent American think-tank, discussed The Gulf Cooperation Council and a Regional Currency In 2005, the Gulf Cooperation Council (GCC), a regional trade bloc among Bahrain, Kuwait, the possibilities of an East Asian Oman, Qatar, Saudi Arabia and Monetary Union, stating: "The he United Arab Emirates, question for the 21st century is announced the goal of creating a single common whether analogous monetary blocs will form in East currency by 2010. It was reported: "An economically Asia (and, for that matter, in the Western united and efficient GCC is clearly a more interesting | Hemisphere). With the dollar, the yen, and the single proposition for larger companies than each individual European currency floating against one another, other, economy, especially given the impediments to trade — small open economies will be tempted to link up to evident within the region. This is why trade relations one of the three. within the GCC have been a core focus of late." "But the linkage will be possible only if accompanied Further, it was stated that "|t]he natural extension of _ by radical changes in institutional arrangements like his trend for increased integration is to introduce a hose contemplated by the European Union. The common currency in order to further facilitate trade spread of capital mobility and _ political between the different countries". It was announced democratization will make it prohibitively difficult to hat "the region's central bankers had agreed to peg exchange rates unilaterally. Pegging will require pursue monetary union in a similar fashion to the international cooperation, and effective cooperation rules used in Europe"’ will require measures akin to monetary unification."” "The GCC [Gulf Cooperation Council] should not rush into currency as member states a regional central bank..." In JUNE — JULY 2009 NEXUS ¢ 13 forming a single need to work out the framework for www.nexusmagazine.com