Gulf countries moved a step closer to monetary union on Tuesday with a decision to base a planned future central bank in the Saudi capital Riyadh. The six-member Gulf Cooperation Council decided at an informal summit in Saudi Arabia that Riyadh would host the region's future banking authority, GCC Secretary General Abdurrahman Al-Attiyah told a news conference. However, Attiyah said after the day-long summit that the group has pulled back from the target of creating a common currency by 2010. “No timetable has yet been established for monetary union,” he said. Attiyah said the first step toward creating a Gulf central bank would be the establishment of a Riyadh-based monetary council, which would exist during a “transitional phase” in the move toward monetary union. Asked to confirm if the central bank would also be based in Saudi capital, Attiyah replied: “Of course, the central bank will be in Riyadh.”
