Monday, Oct 12, 2009
DUBAI (Zawya Dow Jones)--Kuwait retracted Monday statements calling for a delay in the launch of a single Gulf Cooperation Council currency, which has been set for January 2010, the state-run Kuwait News Agency reported, citing a finance ministry official.
Kuwait confirms its support to launching the unified currency on the assigned date of January 2010, Khalifah Hamada, undersecretary of the finance ministry told KUNA Monday.
KUNA cited Kuwait's finance ministry Sunday saying the launch date for the currency should be reconsidered to allow technical committees to conclude their work.
Kuwait is keen to work with the other Gulf Arab states involved in the project to speed up all matters relating to the launch of the single currency on time, Hamada told the agency.
Gulf policymakers and analysts have cast doubt about the ability of the Gulf states to launch the unified currency in 2010, a project that has been delayed several times.
Saudi Arabia, Qatar, Bahrain and Kuwait have signed monetary union agreements that will pave the way for the currency's start. The agreements won't go into effect until they are ratified by all four countries.
The United Arab Emirates, the region's second-largest economy, pulled out of the project this year after Saudi Arabia was chosen as a base for a joint Central Bank.
The UAE is the second country to stay out of the deal after Oman.
Kuwait complicated plans for the single currency by de-pegging the dinar from the U.S. dollar in 2007 and switching to a basket of currencies.
All other Gulf Arab states still link their currencies to the greenback.
By Dania Saadi, Dow Jones Newswires, +9714-364-4960; dania.saadi@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
(END) Dow Jones Newswires
12-10-09 1128GMT
