No u-turn on monetary union exit - Oman

Oman will not reconsider its decision to pull out of the GCC single currency, it was confirmed on Saturday.

The Central Bank of Oman did not attend last week’s meeting of the GCC central bank governors in Doha, where they announced the completion of the draft for the long-awaited monetary union, UAE daily Emirates Business 24/7 reported on Sunday.

"Oman will not participate in the establishment of the monetary union following its earlier decision to withdraw," said Hamoud bin Singour Al Zadjali, CEO of the Central Bank of Oman.

"The Sultanate [of Oman] did not take part in the last meeting of the GCC central bank governors. We are not meant for the foundation of the monetary union after we decided to pull out of the single currency talks."

Zadjali, quoted by the Omani Alwatan Arabic language daily, added that there were no plans to unpeg the country's rial from the United States dollar.

Oman, the second smallest GCC economy after Bahrain, announced last year it was pulling out of the planned single currency on the grounds it was not ready for the scheme, which has been under negotiations for several years.

The GCC countries have set 2010 as an initial deadline for the launching of the monetary union, which will involve the creation of a common monetary council to pave the way for a GCC central bank and a single currency styled on the European Union model.

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