Oman has no plans to join the monetary union

Dubai: Oman has no intention of joining the Gulf monetary union, Yousuf Bin Alawi, Omani Minister in charge of Foreign Affairs said yesterday.

"Oman will not join the monetary unity project in 2010 and not even in 2100," Bin Alawi told Arabic daily Al Bayan.

The minister clarified that Oman is not obstructing the monetary unity project, which was initiated at the GCC 2001 Summit in Muscat.

"Our brothers in the five other GCC states are going ahead with the monetary unity project and issuing the single currency, but Oman is not part of this project," Bin Alawi said.

"Although the GCC statute stipulates that unanimity is a prerequisite for such a project, we did not want to block this sensitive and important project," Bin Alawi said. He said Oman did not find any advantages for the single currency that would enable it to replace six strong and stable currencies.

"Besides, this project was not thoroughly studied, and there were no studies that implied it would have economic and strategic advantages, but our brothers believe the single GCC currency would have such advantages.

"We strongly believe this currency has no benefits, and we fear the advantages of the current currencies would disappear," he said.

Comparing Oman's stand to that of Britain, which opposed the euro and is now reconsidering its position, Bin Alawi said when the European Union set up the single currency, EU countries had strategic goals, but perhaps GCC countries do not have these goals.