<![CDATA[This paper attempts to observes the possibility of common currency area among OIC (Organization of Islamic Cooperation). This is the first step to build financial cooperation in OIC member countries. This paper will analyse with six Middle East countries that is Iran, Iraq, Kuwait, Qatar, Saudi Arabia and United Arabian Emirate. Data were collected from the World Bank database and IMF from 1975 – 2011. VAR (Vector Auto Regression) method was applied to analyses macroeconomic condition in those countries. The study found that the countries, which participate as a member of Gulf Cooperation Council (GCC) except Kuwait has great prospect to continue intensive cooperation on financial sector. Kuwait has not the same integration toward optimum currency area as others. In this regard, differences on macroeconomic policy particularly on decision to choose monetary regime contribute to not join in the Common Currency Area (OCA)]]>
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