The United Arab Emirates is not currently in talks with fellow Gulf states about returning to a regional monetary union plan, the central bank governor said on Tuesday.

"We are not negotiating. For the time being, the position of the UAE is to withdraw," Sultan Nasser Al-Suweidi told reporters when asked if the UAE was negotiating a return from the single currency plan it withdrew from last week.

Al-Suweidi added that the country's benchmark interest rate at 1 percent was a "good rate" for the UAE.

Meanwhile, Saudi Arabia's King Abdullah has said that there is room for reviewing the Gulf Cooperation Council monetary union agreement.

He said the kingdom's ties with the UAE would not be affected by UAE's surprise move to withdraw from the union over plans to locate the joint central bank in Riyadh. - Reuters