DUBAI (Bloomberg): Gulf Cooperation Council (GCC) will extend the deadline to introduce the single currency due to member states still set the framework for the central bank and try to adjust the economic criteria for monetary union.
"GCC single currency will not be introduced until 2010. Preparation activities and technical needs that are required to form the central bank, may not be completed this year," said Nasser al-Kaud, deputy assistant general for economic affairs GCC, the GCC Banking Conference to - IX in Manama, Bahrain's capital, today.
He added Monetary Council, forerunner Gulf central banks, should start operating this year. Value and a name that remains on the single currency, he said, finished the end of this year.
The leaders in the Arab Gulf region in December agreed to establish a central bank and single currency to stimulate trade. However, the agreement of the head of the country still needs support from the six member countries, namely Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates, and Oman.
"It takes more than just political will to execute this project," said Eckart Woertz, Gulf Research economist in Dubai, which does not expect the presence of a single currency until 2012.
The six GCC member countries agreed in 2001 established the style of European monetary union in 2010. Oman decided to move back in the middle of the process.
In the agreement, the member must meet the criteria of economy, including inflation figures should not be more than 2% of the average tertimbang in the GCC and a decrease in fiscal year not more than 3% GDP number.
"Some countries successfully meet the target and I hope no more next year from all countries can achieve the target," said the Kuwaiti central bank governor Sheikh Salem Abdul Aziz al-Sabah in an interview this week. (T03/yn)
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