UAE calls on Gulf Cooperation Council to prepare for united European currency
Gulf, Economics, 7/7/1998

The United Arab Emirates called its fellow members of the Arab Gulf Cooperation Council to take the necessary procedures to confront the results of the institution of the united European currency, the Euro, which will come into use on January 1, 1999.

It also pointed out that the issue of the Euro could lead to the separation of petroleum prices and the US dollar.

In a study for the Emirates Industrial Bank about the expected repercussions of the Euro on Gulf exports, the bank said that the GCC states have to prepare themselves to confront the changes resulting from new currency through studying all probable results of the European currency at the beginning of the coming year. The study said efforts need to be made to avoid any trade difficulties in the GCC states' dealing with the European countries, the U.S. and Japan which account for about 70% of the total foreign trade of the GCC states.

The bank found that the new currency will have an effect on all international financial markets, including that of the GCC. The bank said that moving to the Euro will allow 30 to 53% of the total international trade dealings to be captured by the Euro since it has the support of a 7.46 trillion (trillion is 1000 billion) dollar European economy (1997).

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