How many Gulfs?

24 05 2009

That is an assumption of course. Since the Europeans created the Euro, the Gulfians should create the Gulf; and maybe have its symbol to be a stylized  G (okay, maybe not a G with a strikethrough!)

But still, what would it be named?* What would it look like? What would it show? Colors? Size? There are obvious problems. The GCC has 6 member countries and 6 local currencies. These are the:

Bahrini Dinar

Kuwaiti Dinar

Kuwaiti Dinar

Omani Rial

Omani Rial

Qatari rial

Qatari Rial

Saudi rial

Saudi Rial

UAE Dirham

UAE Dirham

So there are 5+7=12 heads of states that could look for space on the note; the color ranges could be from a soothing blue to a neutral gray to a rich red; the denominations could be as low as .005 of the base unit upto 500 of the same etc etc.

I’ve often thought, who decides such things? The Omani note, forex. Gray! Steel Gray with white! White on a currency note? Anyone expected it to remain white? And the dimensions? Following international standards, I think. But still!

As for the other issues, there are many toothsayers saying all sorts of things. GCC common curreny doomed. UAE plays its card. UAE move shows underlying differences. Currency on brink of failure. & the UAE itself is leaving options open.

I think its not as decisive as it should’ve been could be. The UAE obviously wants all matters pertaining to incoming funds within its jurisdiction at the moment. And the current crunch, if nothing else, tells them the imprtance of having cash-in-hand. On the other side, SA can use its behemothical size to roll this way or that and make the currency happen with or without UAE.

Oman, otoh, I think, has once again shown something that is much better, much deeper and much more decisive than all the other member states. I again do not know who makes these policies (the originators, the one fiscal expert who thought this up, “Let’s not join”), but this basically shows off a “good move” on the part of the country. After all, no one is going to tax Oman or levy any ‘late fees’ if we join later, right? The country has a good, solid 25-year plan going in full swing. The targets decided upon are very much on track, the proper assets are in the proper places to start all engines, but there is essentially no pressing need. Yeah, it would be swell to have tonnes of money and assets floating around, but we have a bit more than we want currently. So no rush. The UK was reviled and pointed at and accused of missing out on something ‘wow’ but they stood their ground and kept the Pound and still joined the EU. Years on, while they are not on top of the world, but they are not hurting either.

But I still think we should move away from the USD peg.

-FK

*A little birdie told me they’re planning to call it the ‘Khaleeji’. Expect all South/East Asians to call it a “Kahleeji” (with a ‘K’ intead of the throaty ‘Kh’)

Proposed Symbol

Proposed Symbol

The Arabic word ‘khaleeji’ (خليجي ) stands for ‘of the gulf’ thus the ‘G’ symbol with the by now customary central bar . And just as the ‘$’ symbol once so aptly stood for ‘ unit of silver ‘ letthe Khaleeji be understood as a ‘unit of gold’? The most convincing argument for such an interpretation is that having a gold/silver backed currency is considered the final leg to remove Riba (ربا ‘interest’ or ‘usury’) from the financial system, which is forbidden arcording to Islamic economic jurisprudence . Or, we can just use the Arabian affinity for gold.

O_O

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3 responses

11 03 2010
Dheeraj

Get me information about UAE dirham.

17 03 2010
The Fark Knight

Hi,

Thanks for commenting. What information so you require?

-TFK

31 01 2013
gulfs

gulfs…

In Thursday I see How many Gulfs? – The Fark Knight. Thanks!…

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