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Doha: Gulf central banks must step up efforts to achieve monetary union as regional economies come under mounting pressure from interest rates and exchange policies, Qatar's Cental Bank Governor said here on Sunday.
Shaikh Abdullah bin Saud al Thani urged Gulf central banks to pursue additional consultations and better coordination of their joint committees to achieve the necessary regulatory convergence for the creation of the single currency.
"Our economies have been facing mounting pressure over the past year due to interest rates and exchange policies. Studies show that these pressures will continue during this year. Henceforth Gulf banks must enhance negotiations and coordination of their financial policies. This would help us achieve the currency union," he said.
"The committees on monitoring prices and payment systems have worked very well in the direction of better coordination. But the technical committee together with the legal division will have to face bigger challenges such as finding an agreement over the economic standards as well as the legislative and organisational structures for the monetary union."
"Central bank governors will meet again in two months," GCC Secretary-General Abdul Rahman Al Attiyah said.
"We are going to review the date in 2009," Shaikh Abdullah said. Of the 2010 target, he said: "It is realistic. We are committed to working towards that target."
According to a source close to the meeting, Gulf central bankers may discuss the signing of a "union currency agreement" as a precondition to the creation of the currency union.
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