GCC Currency Plans Remain on Track

TDT | Manama
Email : editor@newsofbahrain.com

Plans for a unified GCC currency remain on course, with work ongoing to bring member states into step on key economic measures. The Finance Ministry confirmed in a letter to Parliament that the Gulf Monetary Council, set up in 2010, is working on inflation levels, interest rates, and public debt before the currency can be introduced.

The council, which operates from Riyadh, was established after the ratification of the GCC Monetary Union Agreement under Law No. 55 of 2009. The agreement and the council’s rules came into force on 27 March 2010.

In 2013, central bank governors agreed on a framework to bring banking supervision into line across the region, covering licensing, capital rules, risk handling, and compliance.

Progress has also been made on linking up payment systems, with a regional agreement approved at the 41st GCC Supreme Council session in Al-Ula.

The Finance Ministry noted that the Gulf Monetary Council has pressed on with its work in 2024, strengthening ties between central banks and ensuring policies are in step with the economic goals of member states. It has carried out studies on liquidity trends, macroeconomic forecasting, and financial stability, with Bahrain playing a key role in shaping these discussions.