UAE shall not back off decision not to join unified GCC currency -- Al-Suwaidi
Economics 9/28/2009 3:35:00 PM
ABU DHABI, Sept 28 (KUNA) -- The United Arab Emirates (UAE) shall not, so far, back off its decision not to join the unified GCC currency, Governor of UAE's Central Bank Sultan Bin Nasser Al-Suwaidi said here Monday.
The UAE is not considering such decision in the time being, Al-Suwaidi told KUNA on the sidelines of the 33rd regular session of governors of Arab central banks and monetary institutions, which kicked off earlier today.
The UAE, on May 22, 2009, made the decision to withdraw from the GCC monetary union agreement.
The monetary policy of the UAE will continue with its open approach without any alternation, as the AED will still be pegged to the US dollar, Al-Suwaidi noted, adding that the status of liquidity at local banks is stable, while lending; either in the forms of personal loans or retail, is going smoothly.
As for corporate and wholesale markets, business is still not as active due to impacts of the global economic downturn, the governor stated.
Interest rate declined 40 points during the last three months, which is a "good" thing, Al-Suwaidi said, adding that such matter would help elevate status of liquidity in banks.
The GCC -- Gulf Cooperation Council -- countries will discuss procedures to be taken to protect banks from potential financial crises during the meeting, Al-Suwaidi said.
In an endeavor to lessen impacts of the recent crisis, the UAE provided AED 70 billion (USD 19 billion) in financial facilitations for national banks, he concluded.
(end) bmj.hb KUNA 281535 Sep 09NNNN
