The United Arab Emirates, State of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, State of Qatar, and State of Kuwait are the six members of the Gulf Cooperation Council. The paper examined theoretically and empirically the viability of the alleged potential monetary union among these nations before 2010. The ideal foreign government, according to the theoretical model, should maximise oil income while preserving internal and external balances. This was demonstrated to occur at either the highest expected foreign exchange rate or the lowest degree of volatility and uncertainty in the foreign exchange rate markets. Calculations using a calibrated model showed that the intended monetary union would probably lead to economic benefits if the GCC nations had selected a foreign policy tied to the SDR.
Ghada Gomaa A. Mohamed,
ECO-ENA: Economics & ECO-Engineering Associate, Inc. Forward Academy, Canada.
Editor Advisor of Cambridge Scholars Publishing, Canada.
Please see the link here: https://stm.bookpi.org/CABEF-V1/article/view/7305
Keywords: Single currency, GCC, regime, convergence, moving-average test.