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An accord to establish the AGCC Central Bank to handle the task of the unified Gulf currency is likely to be reached by mid 2006 following the submission of proposals by the general secretariat to the Supreme Council Authorities of the AGCC States.

Nasser Al Qauod, director, finance and monetary integration, general secretariat of the AGCC States, has said: “The financial and monetary department of general secretariat of the AGCC is in the process of submitting three proposals of how the Gulf Monetary authorities will handle the implementation of the new Gulf unified currency. The proposals include establishment of a major AGCC Central Bank which will cooperate and coordinate with the national central banks existing in each country, the second proposal is to set up a financial coordination body under the umbrella of the general secretariat to take the responsibility, and the third proposal is to authorise governors of the present central banks operating in each to handle the monetary policies and issuance of the new unified currency.”

As part of preparation to launch the new unified currency, the needed staff and human resources to run the major institution must be prepared in advance, that is why we are rushing the process, added Dr Nasser.

The first proposal is favoured by the monetary specialist in the General Secretariat and the Governors of central banks, therefore it seems it will be adapted and agreed upon.

The main goal of the new Central bank is to steer the unified currency policy and draw the guidelines for the relationship between the new bank and the already existing authorities in each country.