Brief updates on currency

Abu Dhabi was cool, more on that later . . .

As for the unified Gulf currency planned for 2010, an economist says it is unlikely to happen. Oman has backed out, Kuwait removed their currency peg, and the UAE is starting to waffle on the idea. Looks like a common currency is out. Shame, I appeciated how much introducing the Euro simplified things, and a GCC currency could have done the same.

In other banking news looks like the Central Bank is getting "tough" with banks lending money to individuals. Now such loans are capped at something like QR2.5 million (a paltry US$686,000) and the maximum repayment term is 84-months. That's cracking down?? No wonder these banks have so many defaults if they are willing to lend large sums like that over 7-years.