GCC central bankers discuss post-pandemic economic recovery in the region

Regulators have emphasised the need for laying out plans for liquidity provision and supporting the private sector

The Central Bank of the UAE praised the UAE leadership for its efforts in aiding the country's economic recovery. Ryan Carter / The National
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Banking regulators in the GCC on Tuesday emphasised the need to lay out a “preparedness” plan to accelerate the region's post-Covid-19 economic recovery.

Enhancing liquidity across national economies and supporting the private sector through the pandemic will be critical for economies to bounce back and central banks will play a critical role in that, they said at the 75th GCC Committee of Monetary Authorities and Central Banks Governors meeting.

The meeting, which was held online and chaired by Abdulhamid Saeed, governor of the Central Bank of the UAE, also discussed the implementation of operational initiatives to upgrade the banking sector in the region, the CBUAE said in a statement.

“We aim to achieve positive outcomes from this committee to further enhance financial stability and safeguard our economies in GCC countries promoting sustained and accelerated developments in the banking sector in the UAE,” Mr Saeed said.

Developments on setting up the Gulf Payments Company and updates in the implementation of anti-money laundering and counter terrorist financing (AML/CFT) policies in the GCC were also on the meeting’s agenda, according to the statement.

Mr Saeed commended regulator’s efforts to support sectors of the economy that have taken the brunt of the fallout from the Covid-19 pandemic and hailed attempts to “complete the legislative and administrative procedures to establish and register the Gulf Payments Company”.

“The latter will undoubtedly play an integral role in facilitating financial transactions efficiently through ‘Afaq’ system, which connects payment systems in the Gulf countries," he added.

Discussions were held highlighting progress on monetary and financial developments as well as plans to improve collaboration among GCC countries to accelerate economic growth.