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Dubai/ Abu Dhabi: The majority of residents said they would welcome the implementation of a single Gulf currency because it would make the Gulf economies free from the influence of the US dollar.
The Gulf Cooperation Council (GCC) said it was uncertain it could meet the 2010 deadline for a monetary union.
During a two-day meeting in Jeddah held earlier this week, the six states were divided over how to respond if the US interest rates continue to fall, in addition to the effects on the currency pegs to the falling dollar rate.
Analysts in Dubai said the Gulf countries had no reasons to change their exchange rate policies away from their peg to the dollar, as the peg has helped attract foreign investments.
Residents expressed mixed opinions on the proposed unification of the currency. Most said it would make matters "easier."
"I would want the Gulf States to adopt a single currency, but whether it would have a positive effect depends on the inflation rate in all the countries," said Bashar Mezher, 30, a Lebanese customer account manager.
Junaid Ansari, 40, an Indian engineer, said a common Gulf currency should have been implemented a long time ago.
"A common currency can withstand the rising inflation in the region. Gulf nations must follow the steps taken by European Union in this regard," he said, adding a common currency must be a tool to make the Gulf economies free from the influence of the US dollar.
Mohammad Sultan, 25, an Emirati engineer foresees more trade and professional opportunities with a unified economy of GCC nations.
However, Hayden Jeffs, 35, a financial consultant from the UK, said: "It wouldn't make a positive difference to the UAE, and I think that if we had a monetary union, the results would be a lot like the euro."
With respect to the UAE, he explained the value of the single currency would be lost through the translation of money.
Amjad Ali, 27, a business lecturer, thought a GCC currency would combat the problem of the dirham losing its monetary value as a result of the devaluation of the dollar.
Sumaruu Ito, 29 from Indonesia, an operator at a petroleum company, said he favours a common currency as it will be beneficial for both GCC nationals and expatriates.
Setback: Disagreement about 2010 target date
The six Gulf States have been planning to unify their economies and introduce a single currency by 2010. However, during the past few months there have been doubts about the feasibility of achieving this goal due to the difference of opinion among the member states on the target date.
Cracks in the GCC monetary union plan began to appear from the beginning of this year. The Central Bank of Oman had publicly admitted the country was not ready for a single currency.
The Gulf central bank governors who met in Saudi Arabia in early September had announced that the 2010 target was not realistic, however they said they would work towards an early deadline.
The central bank chiefs who met on Saturday said the decision on the new deadline has been left to the GCC rulers who will meet in December.
By Babu Das Augustine, Banking Editor
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