Exploring the Requirements for a Unified Arab Bank and Currency

The countries of the world are suffering from severe economic crises that force countries to resort to new and innovative ideas that help them overcome the global crisis. Will the Arabs be able to create a single bank and a single currency to save the day?

Egyptian economist Hani Abul Photoh said: “A single bank and currency for the Arab world could have great economic benefits, such as facilitating trade between Arab countries and providing financial and economic stability. It could also improve the financial situation of many developing Arab countries that suffer from problems with inflation and external debt.

And he continued in RT statements: “The idea of ​​a single bank and a single currency for the Arab countries may be a good idea, but it is necessary to study all the factors and challenges and previous experience in implementing such huge projects as the European one. It is necessary to study the union, as well as work to improve the national economy and expanding economic cooperation among Arab countries before launching the single bank and single currency project.

He pointed out that “if we ignore political objections, what is preventing the Arabs from taking this step, at least on an economic level?” He pointed out that there are many factors that are considered an obstacle to achieving a single bank and a single currency for the Arab countries, including economic differences among Arab countries. Arab countries differ among themselves in the size of their economies, levels of growth and economic development, management systems and economic policies, making it difficult to reach consensus and agreement on an economic system and a single currency.

He noted cultural, linguistic and legal differences, since “Arab countries differ in language, legislation and culture, and this leads to difficulties in reaching understanding and agreement on an economic system and a single currency, and monetary and economic policy are among the most important elements of a national sovereignty, and some countries may fear losing that sovereignty if they decide to join an economic system and a single currency.”

Abul Photoh stressed that among the expected obstacles are the presence of technical and administrative difficulties, since the process of creating a single bank and a single currency requires great cooperation between countries and great efforts in management, organization and legislation, and this requires a lot of time and effort.

He continued: “The Arab countries together can form a global economic weight if they can cope with the challenges and difficulties they face and the necessary reforms are carried out in the Arab economies. This could make a huge difference to the global economy. “

Source: RT

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