Kuwaiti Minister Says Gulf Currency May Be Linked to Basket

Gulf Arab states planning a single currency may choose to peg it to a basket of currencies rather than to the dollar, Kuwait’s Foreign Minister Sheikh Mohammed Sabah al-Salem al-Sabah told parliament.

“The single currency won’t necessarily be linked to a particular currency,” Al-Sabah said today. “It could be linked to a currency or a basket of currencies, and this will be discussed by GCC countries.”

The Kuwaiti parliament today delayed a vote to ratify an accord to establish a monetary council, a precursor to a unified Gulf central bank. Lawmakers said they needed more details on the impact of monetary union on the Kuwaiti economy and the dinar before voting. Unlike other Gulf states, Kuwait does not peg its currency to the dollar.