UAE pullout won't derail FX union: Saudi
Riyadh, May 27, 2009
The United Arab Emirates' withdrawal from a Gulf monetary union will not derail the region's single currency plan, Saudi Arabia's central bank governor said on Wednesday.
'I don't believe that the withdrawal will affect it (monetary union) because there are still four countries that are excited about it,' Muhammad Al-Jasser said at a meeting in the Red Sea port city of Jeddah.
The UAE, the second-largest Arab economy, broke ranks with Saudi Arabia, Kuwait, Qatar and Bahrain last week by withdrawing from the single currency plan in protest of a May 5 decision to base the joint central bank in the Saudi capital Riyadh.
Analysts have debated whether the UAE opt-out would derail the long-troubled project to create a monetary union.
Oman opted out in 2006 and earlier this year, the Gulf Cooperation Council abandoned an initial 2010 deadline for issuing common notes and coins. - Reuters