The countries of the world suffer from severe economic crises, which make it necessary for countries to resort to new and advanced ideas that help them overcome the global crisis. Can the Arabs establish a unified bank and one currency that saves the situation?
Egyptian economist Hani Aboul Fotouh said, “A unified bank and currency for the Arab world could have great economic advantages, 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 inflation problems.” and external debt.
And he continued in statements to RT: “The idea of a unified bank and a unified currency for the Arab countries may be a good idea, but all factors and challenges must be studied and previous experiences in implementing such huge projects as the European Union must be studied. Work must also be done to improve national economies and expand economic cooperation.” between the Arab countries before embarking on the launch of a unified bank and unified currency project.
He pointed out that “if we ignore the political objections, what is preventing the Arabs from achieving this step, at least on the economic level?” He pointed out that there are many factors that are considered an obstacle to achieving the establishment of a unified bank and a single currency for the Arab countries, including the economic differences between the Arab countries. Arab countries differ among themselves in the size of the economy, levels of growth and economic development, systems of governance and economic policies, which makes it difficult to achieve consensus and agreement on an economic system and a single currency.
He noted the cultural, linguistic and legal differences, as “the Arab countries differ in language, law and culture, and this leads to the difficulty of achieving understanding and agreement on an economic system and a unified currency, and the currency and economic policies are among the most important elements of national sovereignty, and some countries may fear losing this sovereignty if I decided to join an economic system and a single currency.”
Aboul Fotouh stressed that among the expected obstacles are the existence of technical and administrative difficulties, as the process of establishing a unified bank and a single currency requires great cooperation between countries and great efforts in management, organization and legislation, and this requires great time and effort.
And he continued: “The Arab countries together can form a global economic weight, if they are able to deal with the challenges and difficulties they face and the necessary reforms are achieved in the Arab economies. It can make a huge difference in the global economy.”
This article was originally published by RT.