Monetary Coordination Amongst the Gulf Cooperation Council Countries PDF Download

Author: Iqbal Zaidi
Publisher:
ISBN:
Category :
Languages : en
Pages : 24

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Book Description
This paper assesses the desirability of coordinating monetary policies, both in general for a currency area and with particular reference to the Gulf Cooperation Council (GCC) countries. It discusses a number of important aspects of the functioning of the GCC economies, with a particular focus on factors that influence the money supplies of these economies. Some regression results are presented that provide insights on the transmission mechanism of monetary policy in the GCC countries and on the degree of similarity between their inflation and output tradeoffs, which is relevant to the successful functioning of a currency area.

Author: International Monetary Fund. Research Department
Publisher:
ISBN:
Category :
Languages : en
Pages : 19

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Book Description

Author: Mr.Ugo Fasano-Filho
Publisher: International Monetary Fund
ISBN: 9781589062191
Category : Business & Economics
Languages : en
Pages : 80

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Book Description
The six member countries of the Gulf Cooperation Council (GCC)--Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates--have made important progress toward economic and financial integration, with the aim of establishing an economic and monetary union. This paper provides a detailed analysis of the economic performance and policies of the GCC countries during 1990-2002. Drawing on the lessons from the experience of selected currency and monetary unions in Africa, Europe, and the Caribbean, it assesses the potential costs and benefits of a common currency for GCC countries and also reviews the options for implementing a monetary union among these countries.

Author: Abdulrahman K. L. Al-Mansouri
Publisher: International Monetary Fund
ISBN: 1451862989
Category : Business & Economics
Languages : en
Pages : 33

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Book Description
The six member states of the Gulf Cooperation Council (GCC)-Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (UAE)-have laid out a path to a common market by 2007 and monetary union by 2010, based on economic convergence. To monitor convergence and support economic and monetary policy, comparable economic data for member countries and data for the region as a whole will be essential. What is the most efficient way to produce these data? The authors survey the statistical institutions in the GCC countries and present the case for creating "Gulfstat"-a regional statistical agency to operate within a "Gulf States System of Statistics." Valuable lessons can be learned from regional statistical organization in Africa and the European Union-Afristat and Eurostat.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1498346200
Category : Business & Economics
Languages : en
Pages : 33

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Book Description
Effective liquidity management is important to promote macro-financial stability in the GCC countries. Fixed exchange rate regimes provide credible nominal anchors in the GCC countries, but combined with open capital accounts, they also entail limited monetary policy independence. At the same time, high dependence on hydrocarbon revenue has made the region vulnerable to oil price-driven liquidity swings. And the latter can affect monetary policy implementation, including by exacerbating credit and asset price cycles. This highlights the importance of frameworks aimed at forecasting liquidity and ensuring appropriate liquidity levels through the timely absorption or injection of liquidity by central banks. Over the past decade, liquidity management in the GCC countries has been based mainly on passive instruments. Abundant liquidity during times of high oil prices have placed liquidity absorption at the center of the central bank operations. Reserve requirements have helped absorb liquidity but have not been used very actively. Standing facilities, another key instrument, are more passive in nature, with the amount of liquidity absorbed or injected driven by banks rather than monetary authorities. Central banks bills or other instruments have also been used, but issuance has not systematically been based on market principles. In addition, these operations have been constrained by limited liquidity forecasting capability and the shallow nature of interbank and domestic debt markets.

Author: International Monetary Fund. Middle East and Central Asia Dept.
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 53

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Book Description
GCC policymakers have managed to quickly mitigate the economic impact of the twin COVID-19 and oil price shock. Commodity prices have surged, and the outlook is more positive for GCC countries, with new challenges linked to Russia’s invasion of Ukraine and tighter global financial conditions expected to have a limited impact on GCC economies. While GCC countries have overall benefited from higher, albeit volatile hydrocarbon prices, numerous risks still cloud the outlook—notably a slowdown in the global economy. In this context, the reform momentum established during the low oil price years should be maintained—irrespective of the level of hydrocarbon prices.

Author: Rana Sami El Helou
Publisher:
ISBN:
Category :
Languages : en
Pages : 158

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Book Description
The first and introductory chapter will describe the Gulf Cooperation Council (G CC) and the objectives of the research. The second chapter of this research will be an overview of monetary policies in the six countries that are members of GC C. It will describe the institutions that conduct the policies; and the instrume nts, targets, goals of each country's policy. It will also present a comparison of those policies. The third chapter will tackle exchange rate regimes in relati on with monetary policy. It will focus on each policy's target with respect to exchange rate and whether this target is achieved or not. Then it will analyze w hether each country's exchange rate regime is the optimal one or whether further coordination between members of the council will lead to an even better exchang e rate system for the countries concerned. The fourth and concluding chapter wil l study the implications of monetary policy and exchange rate on the sustainabil ity of fiscal policies, financial growth, balance of payment, and macroeconomic stability. Finally, the fifth and concluding chapter will review the main findin gs of this research. These conclusions state that there is a strong degree of mo netary integration to support the currency union that is expected to take place in 2010. However GCC countries need to work on fiscal convergence. Also, there i s a strong need for the diversification of certain GCC economies from oil produc tion since their reserves are being depleted.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1498341136
Category : Business & Economics
Languages : en
Pages : 28

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Book Description
The global and regional economic environment remains challenging. Global growth remains tepid, and although some pick-up is expected, risks are tilted to the downside. Recent volatility in financial markets is having a significant impact on some large emerging markets, highlighting the challenges that will be faced in unwinding the Federal Reserve’s quantitative easing policy. Geopolitical uncertainties in the Middle East are also high.

Author: International Monetary Fund. Middle East and Central Asia Dept.
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 74

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Book Description
The GCC region’s non-hydrocarbon growth momentum remains strong, driven by higher domestic demand, increased gross capital inflows, and reform implementation. Oil production – which depends on OPEC+ decisions – will be subdued in the near term. Inflation is contained and current account surpluses are high. Fiscal balances remain healthy, supported by fiscal reforms and high oil prices. The primary non-oil deficits are expected to decrease to 24 percent of GDP by 2028, with higher non-oil revenue reflecting sustained fiscal and structural reforms and contained expenditures. High global uncertainty is weighing on the outlook.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1498346197
Category : Business & Economics
Languages : en
Pages : 28

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Book Description
Global economic activity is gaining momentum. Global growth is forecast at 3.6 percent this year, and 3.7 percent in 2018, compared to 3.2 percent in 2016. Risks around this forecast are broadly balanced in the near term, but are skewed to the downside over the medium term. The more positive global growth environment should support somewhat stronger oil demand. With inflation in advanced countries remaining subdued, monetary policy is expected to remain accommodative. GCC countries are continuing to adjust to lower oil prices. Substantial fiscal consolidation has taken place in most countries, mainly focused on expenditure reduction. This is necessary, but it has weakened non-oil growth. With the pace of fiscal consolidation set to slow, non-oil growth is expected to increase to 2.6 percent this year, from 1.8 percent last year. However, because of lower oil output, overall real GDP growth is projected to slow to 0.5 percent in 2017 from 2.2 percent in 2016. Growth prospects in the medium-term remain subdued amid relatively low oil prices and geopolitical risks. Policymakers have made a strong start in adjusting fiscal policy. While the needed pace of fiscal adjustment varies across countries depending on the fiscal space available, in general countries should continue to focus on recurrent expenditure rationalization, further energy price reforms, increased non-oil revenues, and improved efficiency of capital spending. Fiscal consolidation should be accompanied by a further improvement in fiscal frameworks and institutions. The direction of fiscal policy in the GCC is broadly consistent with these recommendations. Policies should continue to be geared toward managing evolving liquidity situations in the banking system and supporting the private sector’s access to funding. While countries have made progress in enhancing their financial policy frameworks, strengthening liquidity forecasting and developing liquidity management instruments will help banks adjust to a tighter liquidity environment. Banks generally remain profitable, well capitalized, and liquid, but with growth expected to remain relatively weak, the monitoring of financial sector vulnerabilities should continue to be enhanced. Diversification and private sector development will be needed to offset lower government spending and ensure stronger, sustainable, and inclusive growth. This will require stepped-up reforms to improve the business climate and reduce the role of the public sector in the economy through privatization and PPPs. Reforms are needed to increase the incentives for nationals to work in the private sector and for private sector firms to hire them. Increasing female participation in the labor market and employment would benefit productivity and growth across the region. Where fiscal space is available, fiscal policy can be used to support the structural reforms needed to boost private sector growth and employment.