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A How should be the structure of the suggested Central Bank for GCC B How might this bank be similar or different from the European Central Bank C What are the arguments for and against the GCC central bank

Central Bank is an institution mandated with controlling the supply of currency within a given economy. either a country or a block of countries. The institution uses various tools at its disposal to control the currency supply including the open market operations, discount window lending and change in reserve requirement (Grossman, 2010). The early central banks in the world included the Swedish Riksbank and the Bank of England traced back to the 1668 and 1694 respectively. The two institutions were mandated with managing governments’ debts and also held deposits from other banks. This was later developed to have them manage the money supply of the various countries where they operated. The European central bank was an aftermath of the adoption of a single currency system of the European Union.
The countries signed a treaty to have a common currency for the member states, the Euro. With the acceptance of the Euro as a common currency, there was need to stabilize the economies of the member states thus the move by the central banks within each of the member states to form a unified central bank for the region. Though having a common ECB, the individual countries still have their own national central banks due to varying internal conditions of the various countries. The European community that adopted the use of the euro is represented by the international organizations and other forums where the European matters are of concern. Though a public authority, the ECB operates similar to a corporation in its management and operation (Scheller, 2006). The GCC countries also have decided to form a similar organization of the countries in the Galf Arab states. The Gulf corporation council comprises of six member states. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates, The countries are united by the common factor of the situated along the Persian gulf and they share a common language. Furthermore, the countries are all Arab

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