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Currency Arrangements and Banking Legislation in the Arabian Peninsula (Structure monétaire et législation bancaire dans la péninsule arabe) (Sistemas monetarios y legislación bancaria en la Península Arábiga)

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  • Michael E. Edo

    (International Monetary Fund)

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    Abstract

    The paper examines the rapid developments in currency arrangements and banking organization that have occurred in the Arabian Peninsula in recent years and analyzes the provisions of relevant financial legislation that has recently been enacted. Only two decades ago, the Peninsula was predominantly on a metallic standard, with two silver coins (the Maria Theresa thaler and the Indian rupee coin) and the British gold sovereign in widest circulation. As the level of economic activity in the Peninsula increased, full-bodied metallic coins became increasingly unsuitable for use and the Peninsula states first used paper currencies issued elsewhere (the Indian rupee in the Gulf States and the East African shilling in Aden) and then issued their own national currencies. Institutional development, as discussed in the paper, consisted first of currency boards to issue the currencies and later of central banks or equivalent institutions to manage the currency, supervise credit, and regulate the commercial banking sector. This institutional change occurred against a background of large increases in the foreign exchange surpluses of the oil exporting countries in the Peninsula and of a significant expansion in the number and total assets of the commercial banks. The establishment of the Saudi Arabian Monetary Agency in 1952 is also described, as well as the institution's stabilization, banking, and currency management policies in the 1950s and 1960s. In addition, the paper contains an extended discussion of the provisions of the central banking legislation of the various countries as related to purposes, ownership and capital, Boards of Directors, currency and external reserve requirements, and the relations of the central banks to the governments and to the financial institutions. /// Ce document étudie les transformations rapides subies ces dernières années par la structure monétaire et l'organisation bancaire de la péninsule arabe et analyse les dispositions des règlements financiers pertinents récemment entrés en vigueur. Il y a encore vingt ans, les monnaies métalliques prédominaient dans la péninsule. Deux pièces d'argent, le thaler Marie-Thérèse et la roupie indienne, et une pièce d'or, le souverain britannique, étaient les plus utilisées. A mesure que l'activité économique de la péninsule se développait, les pièces métalliques lourdes sont devenues de plus en plus malcommodes à utiliser, les Etats de la péninsule ont alors commencé par utiliser des billets de banque émis par d'autres pays (roupie indienne dans les Etats du Golfe et shilling est-africain à Aden) puis ont émis leur propre monnaie. Du point de vue des institutions, comme le signale le document, on a d'abord créé des conseils monétaires chargés d'émettre les billets, puis des banques centrales ou des organismes équivalents chargés de la gestion de la monnaie, de la supervision du crédit et de la réglementation du secteur des banques commerciales. Le gonflement important des excédents en devises étrangères des pays exportateurs de pétrole de la péninsule et l'augmentation significative du nombre des banques commerciales et du montant total de leurs avoirs avaient rendu ces nouvelles institutions nécessaires. Le document décrit également la création de l'Agence monétaire de l'Arabie Saoudite en 1952, ainsi que les politiques de stabilisation, de gestion monétaire et les politiques bancaires de cet organisme au cours des années 1950 et 1960. En outre, le document étudie longuement les règlements des banques centrales des différents pays en matière d'objectifs, propriété et capital, conseil d'administration et coefficient obligatoire de liquidité et de réserves extérieures, ainsi que les relations entre les banques centrales et les gouvernements, d'une part, et les institutions financières, d'autre part. /// Este estudio examina la rápida evolución en los sistemas monetarios y organización bancaria que ha tenido lugar en la Península Arábiga en los últimos años, analizándose además las disposiciones de legislación financiera recientemente aprobadas. Hace sólo dos décadas, la Península se basaba fundamentalmente en un patrón metálico, con dos monedas de plata (el tálero de María Teresa y la rupia india) y el soberano de oro británico en máxima circulación. Al aumentar la actividad económica, se hizo menos práctico el uso de monedas metálicas por lo que los estados de la Península utilizaron, primero, papel moneda de otros países (la rupia de papel india en los estados del Golfo y el chelín de Africa oriental en Adén) para emitir después sus propias monedas nacionales. En el aspecto institucional, tal como lo elucida este estudio, se crearon primero juntas monetarias emisoras de monedas y después bancos centrales o instituciones equivalentes para administrar la moneda, supervisar el crédito y regular el sector bancario comercial. Esta transformación institucional tuvo lugar en el momento en que surgían grandes incrementos en los superávit de divisas de los países exportadores de ptróleo de la Península y aumentaban significativamente el número y los activos totales de los bancos comerciales. Se describe también la creación en 1952 del Instituto Monetario de Arabia Saudita así como sus políticas estabilizadora, bancaria y de administración monetaria en las décadas de 1950 a 1970. Además, el estudio desmenuza las disposiciones de la legislación bancaria de los diversos países en lo relativo a objetivos, propiedad y capital, Juntas de Directores, obligaciones de reservas externas y monetarias, así como las relaciones entre los bancos centrales y los gobiernos, por un lado, y las instituciones financieras, por otro.

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    Article provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.

    Volume (Year): 22 (1975)
    Issue (Month): 2 (July)
    Pages: 510-538

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    Handle: RePEc:pal:imfstp:v:22:y:1975:i:2:p:510-538

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