The GMU won’t be in place by 2015

Although the original and long-planned date for the Gulf Monetary Union’s single currency was 2010, I’m putting my neck out once again and predicting that a currency union of all the current GCC countries won’t happen by end 2015.

There are too many political problems, too much fallout from the Euro and, frankly, too many good reasons not to do it. In some ways, Saudi Arabia may exert enough pressure in the region to make it work, but for the same reason I suspect some may be wary of Saudi gaining any more leverage.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.