Governor of the Central Bank of Kuwait (CBK) Dr Muhammad Al-Hashel affirmed Monday necessity of Gulf countries’ careful response to different challenges facing the region to ensure sustainable economic prosperity.
Dr Al-Hashel said in a speech delivered at the opening ceremony of the 69th meeting for GCC committee of central banks and monetary institutions’ governors that these challenges and changes have become “a part of our contemporary reality.” He clarified that regional changes come at the same time with huge global economies changes. Monetary policies and openness of Gulf region to global markets have also affected the GCC countries’ economies.
Dr Al-Hashel affirmed the need of taking into consideration precautionary measures to predict and face these changes through studies and researches that would help in strengthening and stabilizing “our financial and monetary status.” Central banks of the GCC countries must continue playing an active role toward facing these challenges through ensuring immunity of Gulf states’ economies, solidifying monetary and financial stability, supporting economic and structural reforms aimed at creating economic diversification, Al-Hashel proposed. Also in his speech, Al-Hashel said strong policies depend on reducing reliance on oil resources, developing national human resources, creating an investment climate and increasing private sector participation in boosting economy.
“This meeting represents a new step toward further achievements in the field of Gulf economic, monetary and financial work,” he said.
In a related context, he stressed the importance of the role played by the Supervisory and Control Committee, and the Committee of Payment and Settlement Systems in increasing the efficiency of banking and financial sectors and protecting them against risks as well as enhancing their ability to face new sudden circumstances.
The one day meeting aims to strengthen sponsoring policies and programs to enhance financial and banking stabilization and developing the infrastructure of the payment and settlements methods in the GCC’s countries. Financial and banking coordination and cooperation among the GCC member states are likely to help consolidate the pan-GCC economic integration, said GCC Secretary-General Abdullatif Al-Zayani.
They also serve the final goal of achieving economic unity of the bloc by 2025, Al-Zayani told the 69th GCC Committee of Governors of Monetary Agencies and Central Banks that kicked started discussions in Kuwait Monday. The GCC Supreme Council had approved linking the payment systems in the member countries, as a major complementary project of the GCC, Al-Zayani added.
The Council also tasked the GCC states with establishing an independent company for GCC payments. Meanwhile, the GCC chief stressed the role of the Committee for enhancing cooperation and integration among the bloc’s monetary agencies and central banks, as well as abolishing difficulties and promoting performance and financial and banking procedures.
The Committee’s tangible efforts have contributed to the development and growth of the vital financial and banking sector, pushing it to a prominent regional and international status despite the economic and political challenges the GCC states are facing, Al-Zayani. The one-day 69th meeting aims to bolster monitoring policies and programs to reinforce stability and strengthen the financial and banking sectors.
SOURCE : ARABTIMES