GCC Finance Chiefs, Bank Governors to Meet Amid High Inflation, Weak Dollar

Click here: ArabNews – GCC Finance Chiefs, Bank Governors to Meet Amid High Inflation, Weak Dollar

The Gulf Cooperation Council (GCC) ministers of finance and economy and central bank governors will hold their 74th meeting here tomorrow and are scheduled to review a number of topics pertaining to joint economic cooperation, SPA news agency website said yesterday.The meeting comes amid surging inflation in the region, which analysts say are due to weak dollar, among others. Observers said that the meeting will also touch on the timetable for a single currency plan which has been dragging on for some time.

Kuwait has already reneged on a pledge made with the other five members to keep its currency pegged to the tumbling dollar to prepare for monetary union. Divisions among the other five over inflation targets at the last meeting of policymakers fired intense market speculation that they would follow, observers said.

With the dollar at record lows, regional inflation at decade highs and central banks facing the prospect of tracking more US interest rate cuts, the central bank governors and finance ministers will be hard pressed to maintain a united front at the meeting tomorrow and Sunday, analysts said…A single currency is unlikely even by 2015, United Arab Emirates central bank governor said in remarks published this month.

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