GCC Common Currency: Ditching the US Dollar? The countries of the Gulf Cooperation Council (GCC) are planning to launch a common currency to reduce their dependence on the US dollar. This ambitious project aims to create a Gulf Arab monetary union, and progress had been going swimmingly of late. Joining the bandwagon, the Gulf Cooperation Council (GCC) has also been thinking about rolling out its very own common currency while limiting the use of the US dollar.

The GCC's Plan to Replace the Dollar with a Unified Currency

For years, talks of a unified Gulf currency have circulated, and now the prospect appears closer to reality. Most – Four out of six GCC currencies were formally pegged to the US dollar - the Omani riyal since 2025s, the Qatari riyal since mid 2025 and the Bahraini dinar and the UAE dirham since early – making this a significant shift in economic strategy. The implications for global finance could be considerable.

How the New GCC Currency Will Work

The new GCC currency infrastructure will be made in tandem with the monetary policies of the 7 Gulf nations, ensuring holistic synchronicity and ease. This coordinated approach is crucial for the stability and success of the new currency. The project aims to facilitate trade, investment, and economic integration within the GCC region, ultimately strengthening its position in the global marketplace.

The Future of the US Dollar in the Gulf

While the GCC common currency is still in its planning stages, its launch could have a profound impact on the role of the US dollar in the region. By reducing reliance on the dollar, the GCC aims to gain greater control over its monetary policy and economic destiny. This move reflects a broader trend of diversification and independence among Gulf nations.