CBK Governor: GCC central banks seek to enhance liquidity predictability

Kuwait, Central Bank of Kuwait Governor Mohammad Al Hashel said Gulf Cooperation Council (GCC) central banks are seeking to create tools for boosting their predictability of banking liquidity.

Governor Al Hashel, also the President of the Gulf Monetary Council (GMC), was speaking during the inaugural session of a workshop on liquidity projection and analysis, co-organized by the CBK and the GCC, Kuwait News Agency (Kuna) reported.

Shedding light on features of the economies of the GCC countries, Al Hashel cited, as factors that affect liquidity levels, direct and fundamental impact of oil income and pegging of the national currencies to the basket of hard currencies.

These economies are also characterized with by internal and external money movement, he added.

However, he cautioned that global developments such as greater trade barriers and political jitters have been affecting the regional countries’ economies.

Advanced states’ monetary policies may lead to adverse outcome, such as higher debts, sharp fluctuation of exchange rates, thus states may be ultimately in difficulty to honor their obligations, he added.

Meanwhile, the council executive director, Dr. Atef Al-Rashidi, said in a statement at the event that the workshop addresses projection and management of liquidity in the GCC countries, where the central banks seek to enhance their abilities with respect of forecasting banking liquidity.

He has pointed out that such greater abilities enable the central banks to intervene in conditions where the liquidity depletes.

Source: Bahrain News Agency