Is the creation of a unified Arab bank and currency feasible?
Many Arab countries are seeking to join the G-20, the BRICS group or other international groups, so why not create your own economic group?!
Dr. Samar Adel, a researcher in international economics and a member of the Egyptian Society for Political Economy, ruled out the idea that the Arab countries would now move towards a single Arab bank and a single Arab currency.
And Dr. Samar Adel pointed out in an exclusive statement to RT that the creation of an Arab economic union should be announced from the start, which is an idea that is not currently being proposed, and its emergence requires that any political differences be put aside. between Arab countries.
She explained that the trend of the Arab countries to declare an economic bloc like the European Union requires going through many stages, which result in the abolition of customs duties between Arab countries, a single Arab bank, and then a single Arab currency, which takes decades. and not just 10 years.
And she stressed that this issue requires the Arab countries to put aside political differences and that pragmatic economic interests play a decisive role.
She explained that the Arab countries have a base on which they can build this economic bloc, for example, Egypt has human resources and other countries own oil, while others are moving decisively towards advanced technologies, such as the UAE, which confirms the existence of a state of diversity. in the region.
And she stressed that the countries of the Arab region are mostly rentiers and semi-rentiers, and the point is that these countries turn into productive countries, giving them the opportunity to enter the global economy.
She pointed out that there are many Arab countries that are interested in keeping the dollar strong for the sake of the petrodollar, which describes the cost of oil bought in US dollars.
For his part, Dr. Ahmed Said, professor of international commercial law, confirmed that Egypt joined the BRICS agreement on March 30, noting that the Arab countries will join the Russian financial system on May 16.
Said, a member of the Association of Political Economy and the Arab Association of Legal Sciences, in exclusive statements to RT, expressed the opinion that at the meeting of the League of Arab States scheduled for next month in the Kingdom of Saudi Arabia, the joining of the Russian-Chinese payment will be announced. a system through which financing will be received from the Development Bank. In yuan, it is allowed to finance Arab purchases in the coming period from Russia and China in yuan.
He pointed out that, according to Bloomberg, internal financial transactions between Russia and China have turned 60% of them into the ruble and yuan, which confirms the possibility of implementing the idea and its implementation within one year, noting that a year after the launch of the Russian military operation on Ukraine, Russia and China have managed to change their international trade by 60% in local currencies, so Egypt and the Arab countries can do it.
He added that Turkey had also proposed to Egypt that the trade exchange between the two countries be carried out in the local currency, the Egyptian pound and the Turkish lira, stressing that all emerging and developing countries were affected by the US Federal Reserve’s excessive interest rate hike.
He pointed out that the United States of America, in order to reduce domestic inflation, attracted dollars from all over the world and made it difficult for all developing countries to finance, which led to many developing countries suffering from crises, and there are countries that suffer from hunger and poverty. because of the recent position of the United States of America.
He emphasized that the latest American measures are characterized by Machiavellianism and selfishness, expressing regret that the World Bank and the International Monetary Fund did not play their role, and demanded that the United States of America stop their measures, pointing out that America is protecting its interests at the expense of all the peoples of the world. and this is a very dangerous thing.
He pointed out that the Bretton Woods agreement, which allowed the United States to use the dollar in international trade, did not provide for Washington to reprint the dollar to go into space and then bear the inflation bill to the world, just as the agreement did not provide, that in order for Washington to protect companies during the Corona, the United States is expected to hit all developing and developing countries with poverty, indicating that as long as America has no desire to abandon this policy, developing countries must take steps to counter it.
Speaking about the direction of the Arab countries towards the creation of a single Arab bank, Dr. Ahmed Saeed emphasized that among the Arab countries, active and effective steps are already being taken to integrate towards a common position of joining the Russian-Chinese financial system so that there is no American confrontation towards one country.
He indicated that Egypt had taken all the steps, starting with joining the Asian Development Bank and other steps, and the next step remained – joining the Russian payment system “Mir”, so that the transfer process began in rubles and yuan, expressing the hope that this will be announced within the next month.
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