The UAE has decided not to take part in the proposed monetary union agreement between the states of the Gulf Cooperation Council, an official source at the Foreign Ministry said on Wednesday according the official news agency WAM.
The source said the General Secretariat of the Gulf Cooperation Council (GCC) has been officially notified today of the UAE’s decision.
“The UAE extends its best wishes for success to those GCC member states who will join the monetary union agreement, ” the source said.
The source further said that the United Arab Emirates will continue to act in the best interest of the citizens of the GCC member states and will also carry out its role as a founding member of the Council, to help it to achieve its mission and goals.
“The UAE’s past record of implementing the GCC’s resolutions is strong proof of its belief in joint GCC action,” the source concluded.
In addition, commenting on the UAE’s monetary policy, the Governor of the UAE Central Bank, Sultan Nasser Al Suwaidi, said that the UAE will continue to maintain its expansionary monetary policy, without change, and that, therefore, it will maintain its the exchange rate of the UAE dirhams’ exchange rate pegged to the US dollar.
The UAE was the first country to officially request, in 2004, the hosting of the planned Central Bank of the Gulf Cooperation Council as part of the arrangements for enety into the Council’s monetary union.
The UAE does not currently host any organisation or body affiliated with the Gulf Co-operation Council.