He added that there was consensus among member states of the Monetary Union Agreement to suspend supplying loans to GCC central banks when the common currency is launched and to ensure that there were no outstanding accounts at these banks that needed processing.
The suspension will not include the banks giving loans to firms and individuals, he said, adding that the Monetary Council was expected to convene for its inaugural meeting in March.
The monetary council will be run by a board of directors comprising central bank governors of member states. Its main tasks include coordination between national central banks regarding monetary policy as well as laying out the remaining technical steps towards the monetary union, including the name of the new currency, its design, safety specifications, and denominations, he said.
It is also charged with completing the process of harmonisation of statistical systems and compatibility of payment systems, as well as a time-table for the launch of the new currency, he said.
The monetary council’s board will be also in charge of verification of compliance with previously envisaged criteria which include limits on public debt and budget deficits, as well as inflation and interest rates across member states, he said.
One of the main functions of the monetary council is to pave the way for, or evolve into, the GCC Central Bank, which will be in charge of GCC unified monetary policy as well as managing the new currency.
In addition to the board of directors, the monetary council will have an executive body to carry out the board’s instructions.
