New competitor for the U.S. dollar ?!

[MrD]

After years of discussion and delay, four states of the Persian Gulf - Saudi Arabia, Bahrain, Qatar and Kuwait - have signed an agreement establishing a new currency.

The decision comes in the context of Russia wants to impose Ruble in trade with Belarus and Kazakhstan and China already uses yuan transactions in some Asian countries.

Now done first concrete step in this direction in 2006 after Oman withdrew from the project, followed gesture, day, the United Arab Emirates. In 2007, Kuwait has decided to quit the addiction currency, dinar, the U.S. dollar, unlike other members of the Council.

Switching to single currency is sometimes a painful process. Some countries fear that going in together , they will lose a part of independence. In addition, they need a single currency policy, even on the U.S.

Initially, said the new currency will be linked, in a first phase, on the the American banknote and in a subsequent phase of a currency basket, where the U.S. dollar would have 45% Euro - 30% Japanese yen - 20 % and the pound sterling - 5%. Experts say that, in conditions of crisis, the currency can only protect the economies of countries in a region cataclysmal strong.

How will future currency name, yet nobody knows, and in recent months the subject was not taken into discussion. But until now have been circulating several variants. Some have proposed "real," others preferred "Gulf dinar". No once the 4 countries suggested that the currency Arabic only be named either "khaliji" (Arabic word for "golf") or "djuman" ( "pearl"). Will it succeed Arab countries to reach a consensus, after six of the remaining four? This have to be seen