ABSTRACT
This chapter examines basic issues involved in the creation of a full-fledged Arab dinar whose characteristics are stability, availability, and attractiveness. It considers the conversion of the Arab dinar into other Arab currencies and vice versa and its circulation. The Arab dinar would facilitate inter-Arab trade if it was used as unit of payment between the various Arab countries. All the advantages that accrued to the United States during the recycling operation would accrue to the Arab World. Arab private banks are becoming more and more active in domestic, regional, and international financial markets. A thought commonly advanced is that any common Arab currency should be based on Arab energy resources. Individual Arab currencies do not enjoy the importance and audience of Western European currencies. The Arab dinar might lose its stability if it was used by the market, for it would be sold and bought, and therefore its availability would be subject to forces uncontrollable by the issuing institution.
