The General Cooperation Council formed in May 25, 1981, according to Nugée and subacchi (2008). It is a union concerned more of political and economic objectives. It is composed of six Arab states situated along the Persian Gulf. These states include Bahrain, Kuwait, Oman, Saudi Arabia, United Arab Emirates (UAE) and Qatar. This union was formed with the mind of achieving a myriad of objectives among them the establishment of a common currency. This meant that the states of the union had to decide on the currency to use, which had to be the only currency in circulation in the states. Hence, that objective of having a common currency resulted in a suggestion of the formation of the Central Bank of Gulf Cooperation Council (Nugée & subacchi, 2008).
The central bank of GCC was to be formed by the six states but unfortunately two states, in particular, Oman and United Arab Emirates, did not join in the central bank formation. Those two states had reasons for not joining in the council. Therefore, the central bank of GCC is a composition of Bahrain, Qatar, Saudi Arabia and Kuwait. The four states formed the common monetary union and a precursor to a Gulf Central Bank, in the march of 2010 (Nugée & subacchi, 2008). ...Show more