random notes

Gulf petro-powers to launch currency in latest threat to dollar hegemony

At the moment, trucks sit paralysed at border posts for days awaiting entry clearance. Labour mobility between states is almost zero.

“The single currency should come last. We need to coordinate our economic policies and build up common infrastructure as a first step,” he said.

Mohammed El-Enein, chair of the energy and industry committee in Egypt’s parliament, said Europe’s example could help the Arab world achieve its half-century dream of a unified currency, but the task requires discipline. “We need exactly the same institutions as the EU has created. We need a commission, a court, and a bank,” he said.

The last currency to trade in souks from Marakesh, to Baghdad and Mecca, was the Ottomon Piaster, known as the “kurush”. It suffered chronic inflation as the silver coinage was debased.

... oil was not so important at the time of the kurush ...
... and a silver backed currency would not make sense in the area ...
... nor a currency based on oil ...
... having 50% of the oil in the world ...
... should be enough guarantee to give value to a fiat currency ...

... is true what stated by El-Enein ...
... but it will take a shorter time to get there ...
... the european system is composed of 27 countries ...
... that have been in war with each other for 2000 years ...
... also in whatever project, the time of research and the first prototype ...
... is half the work ...
... and just studying and duplicating the EU would save 40 years ...

... a system of peers where Egypt, Saudi Arabia and Emirates have dual-voting power ...
... and the others have single voting power ...
... is probably the best look from outside the area ...
... it could get to four ...
... with maybe Maroc as Maghreb leader ...
... since the Maghreb is a very important area for gas production ...
... and probably the most influential west mediterranean possible partner ...