The Gulf Cooperation Council is setting up a company to facilitate direct money transfers among its six members.
The Riyadh-based company will allow Gulf states to transfer money “without reliance on international currencies,” Kuwait central bank Governor Mohammed Al-Hashel told reporters following a meeting of regional central bankers in Kuwait City.
The chief executive officer has been picked and all member states have agreed to contribute initial capital, Al-Hashel said.
“After that the company has to go out and borrow from the Gulf market or use the capital it has generated,” he said. The countries’ central bank governors will sit on the board and a secondary office will be set up in the United Arab Emirates, he said, without saying when the company would start operating.