Gulf markets integrated enough for monetary union

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Financial integration in the Gulf is sufficient to support monetary union though links between payments systems and bond-market networks should be enhanced, researchers at the IMF have found.

The researchers looked at money- and equity-market integration and found the six countries making up the Gulf Co-operation Council scored well on both counts.

"If money markets are well integrated you would expect interest rates to move in a pretty tight band and the research found interest rates converge r

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