Dubai DIFC release report today about progess made by GCC countries to achieve the criteria for the Monetary Union

On August 19, 2008 · In Abu Dhabi, DIFC, Dubai

C Report Assesses Progress towards GCC Monetary Union

The Gate.

19 August 2008
Report identifies key policy issues to be addressed before GMU launch

The Dubai International Financial Centre (DIFC) today released a report assessing the progress being made by GCC countries to achieve the convergence criteria for a GCC Monetary Union (GMU) that were endorsed by the Supreme Council of the GCC at its 27^th session held in Riyadh in 2006.

The report is the first in a series of reports to be released by the Centre focussing on issues affecting the region’s economy.

The report, “An Assessment of the Progress towards GCC Monetary Union”, states that GCC countries remain on schedule to meet the imposed requirements by 2010, but identifies four key policy issues which need to be addressed for the successful launch of the GMU.

“Firstly, there needs to be an institutional and governance framework to ensure smooth, transparent and effective decisions on the conduct of monetary policy and other central bank policies, including the mode of operation of the GCC Central Bank.

Inflation should be the priority item on the policy agenda: there is need for a change in monetary policy towards inflation targeting, with monetary policy geared to maintaining inflation within an announced target range.