Qatar Central Bank Says GCC Deal Risks Policy Tools, QNA Reports

Monetary union between four Gulf Cooperation Council countries will deprive their central banks of independence and the policy tools needed to control economic turbulence, Qatar’s central bank Governor Sheikh Abdullah bin Saud Al Thani told the state-run Qatar News Agency.

The union, planned since 2001, will not allow member states to use exchange rates to rectify the trade balances between them, he said in an interview yesterday.

Sheikh Abdullah highlighted the European Union’s “latest experience that proposes that fiscally stronger countries rescue less strong countries in times of crisis,” the Qatar News Agency said.

To contact the reporter on this story: Robert Tuttle in Doha at rtuttle@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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