Monetary Council will be set up by January, says GCC Secretary General
Fri October 16, 2009 9:04 pm
SAUDI ARABIA. The Gulf Arab states' Monetary Council, a precursor to a joint central bank for four countries planning a single currency, will be established by the start of next year, the Gulf Cooperation Council’s Secretary General Abdul Rahman al-Attiyah said.
“Absolutely,” al-Attiyah said when asked whether he was confident that the monetary council would set up by January.
Saudi Arabia, Kuwait, Qatar and Bahrain are “on track” to create a new shared currency and have done a “lot of work” on technical convergence criteria, Saudi Arabia’s central bank Governor Muhammad al-Jasser said on October 3.
The remaining two members of the Gulf Cooperation Council (GCC), the United Arab Emirates and Oman decided to withdraw from the project.
The UAE was upset at the selection of the Saudi capital Riyadh to host the future GCC central bank, while Oman withdrew from the monetary union saying it was not ready to meet the preconditions.
Gulf Arab leaders in December approved an agreement to create a central bank and single currency for the region to boost trade and strengthen monetary policy.
A single currency would allow the Gulf states to stop pegging their currencies to the dollar and implement independent monetary policy.
Saudi Arabia “hasn’t lost hope” that Oman and the United Arab Emirates will re-join the planned monetary union, Saudi central bank governor Muhammad al-Jasser said on September 1.
The GCC states have set 2010 as the target to launch the monetary union and single currency, but many experts believe that target is too ambitious and unrealistic.
Saudi Arabia has already ratified the monetary union agreement, and Qatar will do so next week, al-Attiyah said.
GCC finance ministers and central bank governors, who are meeting in Muscat tomorrow, will also discuss a plan to create a Gulf development bank to invest in poorer countries, he said.
Fri October 16, 2009 9:04 pm
SAUDI ARABIA. The Gulf Arab states' Monetary Council, a precursor to a joint central bank for four countries planning a single currency, will be established by the start of next year, the Gulf Cooperation Council’s Secretary General Abdul Rahman al-Attiyah said.
“Absolutely,” al-Attiyah said when asked whether he was confident that the monetary council would set up by January.
Saudi Arabia, Kuwait, Qatar and Bahrain are “on track” to create a new shared currency and have done a “lot of work” on technical convergence criteria, Saudi Arabia’s central bank Governor Muhammad al-Jasser said on October 3.
The remaining two members of the Gulf Cooperation Council (GCC), the United Arab Emirates and Oman decided to withdraw from the project.
The UAE was upset at the selection of the Saudi capital Riyadh to host the future GCC central bank, while Oman withdrew from the monetary union saying it was not ready to meet the preconditions.
Gulf Arab leaders in December approved an agreement to create a central bank and single currency for the region to boost trade and strengthen monetary policy.
A single currency would allow the Gulf states to stop pegging their currencies to the dollar and implement independent monetary policy.
Saudi Arabia “hasn’t lost hope” that Oman and the United Arab Emirates will re-join the planned monetary union, Saudi central bank governor Muhammad al-Jasser said on September 1.
The GCC states have set 2010 as the target to launch the monetary union and single currency, but many experts believe that target is too ambitious and unrealistic.
Saudi Arabia has already ratified the monetary union agreement, and Qatar will do so next week, al-Attiyah said.
GCC finance ministers and central bank governors, who are meeting in Muscat tomorrow, will also discuss a plan to create a Gulf development bank to invest in poorer countries, he said.