Regional initiative in the Gulf Arab States: the search for a common currency

Basher, Syed Abul

doi:10.1108/imefm-04-2014-0037

Cited by 2 publications

(2 citation statements)

References 18 publications

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“…Singapore's exchange rate system is characterized by the so-called BBC (Basket, Band and Crawl) principle popularized by Williamson (1998). For a discussion of the applicability of the BBC system to GCC countries, see Basher (2015).…”

Section: Discussionmentioning

confidence: 99%

The oil cycle, the Federal Reserve, and the monetary and exchange rate policies of Qatar

Alkhater

Basher

2016

Middle East Development Journal

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Supporters of the Arab oil-exporting countries' decades-long fixed exchange rate regime argue that since, oil is traded in United States (US) dollars, pegging to the dollar is optimal.However, the weakening relationship between oil prices and the US economy in terms of JEL Classification: E32, E61, F44.Keywords: Oil price, Business cycle synchronization, Counter-cyclical monetary policy, Exchange rate regimes. * We are very grateful to Elsayed Elsamadisy for helpful advice and stimulating conversation at an early stage of the paper. We thank two anonymous reviewers for very helpful and detailed comments and suggestions. We also thank Megan Foster for very careful proofreading and numerous suggestions. The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the affiliated institutions.

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Section: Discussionmentioning

confidence: 99%

The oil cycle, the Federal Reserve, and the monetary and exchange rate policies of Qatar

Alkhater

Basher

2016

Middle East Development Journal

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“…Optimum Para Sahası Çerçevesinde İncelenmesi böyle bir para birliği oluşumunun İslam ülkeleri için faydasının yanında maliyetinin daha fazla olabileceğini göstermektedir. Bunun yanında APB dikkate alınarak İİT'na üye ülkeler örnemlem olarak seçilmiş ve OPS teorisine göre analiz eden çalışmalar yapılmıştır (Basher, 2015). KİK üyeleri ile APB üyeleri arasında çok büyük farklılıklar olsa Cham (2020)'ın çalışmasında enflasyon, faiz ve mali göstergelere göre bazı KİK üyelerinin APB'nin belirlemiş olduğu yakınsama kriterlerini ve dolayısıyla Euro para sistemine girmek için gerekli şartları sağladığını tespit etmiştir.…”

Section: İslam üLkeleri Arasında Para Birliğiunclassified

D-8 Ülkeleri Arasında Parasal Birlik Mümkün Mü? Optimum Para Sahası Çerçevesinde İncelenmesi

Selçuk¹,

Görmüş²

2022

jepr

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Globalization movements and exchange rate fluctuations deeply affect fragile economies and pose risks. Countries have developed various policies to eliminate this exchange rate risk. A monetary union, which is formed by a group of countries, is a crucial tool against the exchange rate risk. This has many benefits, such as the reduction of transaction costs, encouragement of international trade, elimination of exchange rate uncertainty, reduction of information costs, prevention of speculative capital movements, and creation of price transparency. These further benefit consumers and producers. A monetary union also provides microeconomic efficiency because it facilitates price comparison. Therefore, the prices of the member states of the union are expected to converge. Moreover, a monetary union will inevitably create some costs and disadvantages for the member countries. These disadvantages include a loss of national monetary policy independence, imbalances between member countries, problems caused by demand changes, inability to meet unemploymentinflation targets, and deprivation of national seigniorage income.The Optimum Currency Area theory provides two sets of measures that would maximize economic efficiency for an entire region to enable the use of a single currency. The first one is the mitigation of exposure to asymmetric shocks through the similarity of economic structures, openness of trade, and low degree of specialization. The second group is easing adjustment to asymmetric shocks through preference homogeneity, factor mobility, and transfer payments. With this in consideration, the Maastricht criteria are based on economic indicators that European Union member countries must fulfill to get into the European currency area and that they must ensure to maintain once got in the union. To establish a successful and sustainable monetary union, the economic indicators of the countries must ABSTRACT A monetary union means ensuring unity in exchange rates, eliminating all restrictions on capital movements, and realizing convertibility among member countries. Although this concept is not new, the establishment of the European Monetary Union has led to renewed interests. Applying the European member countries' experience and knowledge on this subject is crucial for the economic stability and development of Islamic countries. Using the quarterly data of the exchange rate, inflation, interest rate, and trade during 2000-2020, our study tests whether the D-8 is an optimum currency area. Based on the results of the vector error correction model, the impulse response function, and the variance decomposition, it has been determined that the D-8 as a whole is not an optimum currency area. However, Turkey, Nigeria, Egypt, and Malaysia, considered as a subgroup within the D-8, experience relatively similar shocks to their exchange rates, inflation, interest rates, and trade, as compared with the rest of the D-8. Although these countries are geographically fragmented and distant, their theoretical monetary union would be ...

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Regional initiative in the Gulf Arab States: the search for a common currency

Cited by 2 publications

References 18 publications

The oil cycle, the Federal Reserve, and the monetary and exchange rate policies of Qatar

The oil cycle, the Federal Reserve, and the monetary and exchange rate policies of Qatar

D-8 Ülkeleri Arasında Parasal Birlik Mümkün Mü? Optimum Para Sahası Çerçevesinde İncelenmesi

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