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GCC Plans to Launch Common Currency and Reduce Reliance on US Dollar

2024-07-03 02:55:32.333000

The Gulf Cooperation Council (GCC) is planning to launch its own common currency and reduce the use of the US dollar. The GCC, established in 1981 by Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman, has seen its GDP surpass $3 trillion in May 2023. The organization aims to establish a united central bank and common currency, according to Saudi's Minister of Economy and Planning Muhammed Al-Jasser. The new currency may be pegged to a currency basket, the SDR, or the US dollar. It will eliminate currency conversion costs and raise intraregional trade. The name and exchange rate of the currency are yet to be decided [4a1a91ea].

The Secretary General of the Gulf Cooperation Council (GCC), Jasem Mohamed Albudaiwi, emphasized the solidity and strength of the GCC economy and its ability to face economic challenges. During a roundtable meeting between the GCC and American companies in Washington, Albudaiwi highlighted the steps taken by the GCC countries to strengthen trade and investment ties with the US, projecting statistics that showed the progress of cooperation between the GCC countries and the US, such as bilateral trade reaching around $180 billion in 2023. He also mentioned the success of the GCC countries in the energy sectors, ranking first globally in crude oil production and reserves and second in natural gas reserves. Albudaiwi discussed future strategic projects, including the GCC railway project, which will enhance connectivity and cooperation opportunities with American partners. The GCC countries expressed their commitment to enhancing stability and development in the region and deepening cooperation with the US for sustainable economic growth [5ba4bf61].

The United States is looking to advance its goal of building a regional missile shield through defense meetings with Gulf allies in Riyadh. The US hopes to capitalize on Israel's successful defense against Iranian missiles and drones last month to encourage Gulf allies to integrate their defenses and share sensitive defense information. The US-Gulf Cooperation Council (GCC) meeting follows the US and its allies assisting Israel in intercepting hundreds of missiles and drones launched from Iran. The meeting also takes place amidst ongoing missile and drone attacks by Yemen's Houthis in the Red Sea. The US aims to promote regional intelligence sharing and investments in secure communications. The US delegation will include officials from various military branches, while all GCC members except Israel will send delegations. However, Gulf allies have been purchasing military systems from different vendors, including the US, Europe, China, and other countries, which has created challenges in integrating these systems with US equipment for integrated air and missile defense. The US hopes that the meetings will help Gulf allies recognize the value of integrated missile defense [a261b5db].

Jassim Mohammed Al Budawi, Secretary-General of the Gulf Cooperation Council (GCC), emphasized the strength of the Gulf economy and its ability to face economic challenges during a recorded speech at a roundtable meeting between the GCC and American companies. The GCC countries have taken steps to strengthen trade and investment ties with the United States, focusing on mutual benefits. Bilateral trade between the GCC countries and the United States reached approximately $180 billion in 2023. The Gulf Cooperation Council countries rank first globally in crude oil production and reserves and second in natural gas reserves. The GCC countries are also working on future strategic projects such as the Gulf Railway Project and developing digital infrastructure. The Secretary-General expressed the commitment of the GCC countries to promoting stability and development in the region and deepening cooperation with the United States for sustainable economic growth [01b5a554].

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