KUWAIT CITY (AFP) - The United Arab Emirates (UAE) will be home to the central bank of the six states in the Gulf Cooperation Council (GCC) which are working to set up a monetary union next year, the Kuwaiti finance minister said.
Finance ministers of the GCC bloc who met in Saudi Arabia Saturday welcomed the development, Mahmud al-Nuri told the official KUNA news agency on his return here. He did not say, however, when the bank wwould start operation.
The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
The ministers discussed planned economic integration and obstacles facing the customs union which was launched in January 2003, Nuri added.
In their bid to establish a monetary union in 2005, a common market in 2007 and a single currency at the start of 2010, the GCC states have agreed on several key criteria to bring their economic and fiscal policies closer.
These included budget deficit, ratio of public debt to gross domestic product (GDP), inflation and interest rates and others.
The International Monetary Fund (IMF) has urged the GCC states to coordinate their fiscal policies, saying that under a centralized monetary policy, fiscal discipline including a reduction in public debt will be crucial.
10/24/2004 - 14:18 GMT - AFP