Sheikh Salem opens meeting of chiefs of GCC central banks, monetary institutionsEconomics 3/24/2010
KUWAIT, March 24 (KUNA) -- Governor of the Central Bank of Kuwait (CBK) Sheikh Salem Abdulaziz Al-Sabah has opened the 50th meeting of the committee of the governors of the central banks and chiefs of the monetary institutions of the Gulf Cooperation Council (GCC) member states here on Wednesday.
In a keynote speech to the meeting, Sheikh Salem praised the outcome of the 30th GCC summit hosted by Kuwait in mid December, 2009, saying:
"Part of the summit resolutions culminated the efforts of the committee to launch the GCC monetary council." "The landmark summit gave a strong momentum to the GCC joint economic action; it opened a news chapter in economic cooperation, reflecting the great insight of the GCC leaders," the CBK governor affirmed.
Dealing with the economic outlook in the Gulf region, he said: "The dramatic decline in the inflationary pressures does not mean that the pressures have totally diminished." "However, this enables the central banks and monetary institutions of the GCC member states to adopt more measures to contain the ramifications of the global financial crisis and prod the economic growth," he argued.
Sheikh Salem highlighted the role of the monetary institutions in backing the financial policies and economic growth, noting that the financial stability relied heavily on economic and financial policies.
"With the rising cost of the global financial crisis and the likelihood of the recurrence of the crisis, the international community needs to make joint efforts to ensure financial stability and make sure of the sound performance of the banking sector," he urged.
Highlighting the role of supervisory bodies in preventing future financial crises, he called for adopting early-warning mechanisms that could adopt preventive measures "in the due time." "Taking into account the financial status quo, all efforts must focus on three axes; first, to guarantee the soundness of macro economic policies; to enhance the solvency of the active financial institutions; and to accommodate the international financial criterions while developing an integrated regulatory system," Sheikh Salem suggested.
"The monetary institutions and central banks of the GCC members asserted themselves and proved remarkably resilient during the financial crisis as they helped reduce the impacts of the crisis on their respective economies.
"Their effective response showed the keenness on pursuing protective policies at an early date and offering the necessary support to the various economic sectors," he opined.
"The recent crisis and the subsequent impacts prompted revision of the priority order of the supervisory institutions, the control system of the financial markets, and the operation of the business sector," Sheikh Salem went on to say.
He added that the basic system of the GCC, the economic treaty, the monetary union treaty and the decisions of the GCC Supreme Council constituted a complete reference system for the joint action of the committee of chiefs of the GCC central banks and monetary institutions.
Meanwhile, GCC Assistant Secretary-General for Economic Affairs Mohammad Bin-Obaid Al-Mazrou'ei highly appreciated Kuwait's contributions to the success of the GCC activities.
Addressing the meeting on behalf of GCC Secretary General Abdulrahman Al-Atiyyah, he said His Highness the Kuwaiti Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, as well as the other GCC leaders, offered limitless support to the process of regional economic integration.
Dealing with the economic outlook in the Gulf region, he said: "The dramatic decline in the inflationary pressures does not mean that the pressures have totally diminished." "However, this enables the central banks and monetary institutions of the GCC member states to adopt more measures to contain the ramifications of the global financial crisis and prod the economic growth," he argued.
Sheikh Salem highlighted the role of the monetary institutions in backing the financial policies and economic growth, noting that the financial stability relied heavily on economic and financial policies.
"With the rising cost of the global financial crisis and the likelihood of the recurrence of the crisis, the international community needs to make joint efforts to ensure financial stability and make sure of the sound performance of the banking sector," he urged.
Highlighting the role of supervisory bodies in preventing future financial crises, he called for adopting early-warning mechanisms that could adopt preventive measures "in the due time." "Taking into account the financial status quo, all efforts must focus on three axes; first, to guarantee the soundness of macro economic policies; to enhance the solvency of the active financial institutions; and to accommodate the international financial criterions while developing an integrated regulatory system," Sheikh Salem suggested.
"The monetary institutions and central banks of the GCC members asserted themselves and proved remarkably resilient during the financial crisis as they helped reduce the impacts of the crisis on their respective economies.
"Their effective response showed the keenness on pursuing protective policies at an early date and offering the necessary support to the various economic sectors," he opined.
"The recent crisis and the subsequent impacts prompted revision of the priority order of the supervisory institutions, the control system of the financial markets, and the operation of the business sector," Sheikh Salem went on to say.
He added that the basic system of the GCC, the economic treaty, the monetary union treaty and the decisions of the GCC Supreme Council constituted a complete reference system for the joint action of the committee of chiefs of the GCC central banks and monetary institutions.
Meanwhile, GCC Assistant Secretary-General for Economic Affairs Mohammad Bin-Obaid Al-Mazrou'ei highly appreciated Kuwait's contributions to the success of the GCC activities.
Addressing the meeting on behalf of GCC Secretary General Abdulrahman Al-Atiyyah, he said His Highness the Kuwaiti Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, as well as the other GCC leaders, offered limitless support to the process of regional economic integration.
"The board of directors of the GCC Monetary Council instructed scaling up efforts to bring into force the GCC monetary union treaty (adopted in Muscat, capital of Oman, in December, 2008)," Al-Mazrou'ei pointed out.
"Preparations are underway to determine the time frame for launching the single currency," he added, denying the assumption that the establishment of the monetary union would reduce the tasks of the committee of chiefs of the GCC central banks and monetary institutions.
"Preparations are underway to determine the time frame for launching the single currency," he added, denying the assumption that the establishment of the monetary union would reduce the tasks of the committee of chiefs of the GCC central banks and monetary institutions.
KUNA
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