Finance and economy ministers of theGulf Cooperation Council (GCC) opened a two- day meeting to
discuss further economic integration, officials said.
    They said issues to be discussed by the ministers from
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab
Emirates (UAE) would include a recommendation by central bank
governors on a common currency exchange rate.
    The governors agreed in January on a denominator on which
to base currencies of the six states. Any decision will be
forwarded for final approval to a GCC summit meeting due in
Saudi Arabia late this year.
    The six states have different currency systems. Saudi
Arabia, Bahrain, Qatar and the UAE are linked in theory to the
International Monetary Fund's basket of currencies -- the
special drawing right (SDR) -- but in practice to the dollar.
    Oman links its currency formally to the dollar, while
Kuwait pegs its dinar to a trade-weighted basket devised by
itself.
    The denominator chosen by central bank governors has not
been disclosed, but some bankers expect the currencies to be
linked to the SDR or a trade-weighted basket.
    Opening the meeting, Ahmed al-Tayer, the UAE's Minister of
State for Finance and Industry, said implementation of joint
economic agreements "is increasingly linking the interests of
GCC citizens together."
    The general assembly of the Gulf Investment Corporation met
in Abu Dhabi earlier under the chairmanship of Bahrain's
Finance and National Economy Minister, Ibrahim Abdul-Karim
    The corporation was formed to contribute to joint economic
and investment projects in the GCC.
    Officials said the corporation's assets rose to 1.31
billion dollars last year from 1.04 billion at the end of 1985.
 REUTER
