The Gulf efforts in the financial file finally concluded with the participation of members of the GCC states in establishing a unified system for linking payments, at a time when central banks will work to establish a regional infrastructure and establish a fund to guarantee settlements, revealing the establishment of companies to manage and operate the project.
Umm Al-Qura newspaper – the official newspaper of Saudi Arabia to publish the issued regulations, laws, regulations and decisions, disclosed in detail the decision of the Council of Ministers to adopt an agreement on the system of linking payment systems between the countries of the Cooperation Council for the Arab States of the Gulf, explaining that the agreement on the system of linking payment systems between the countries of the Gulf Cooperation Council – Saudi Arabia, UAE, Kuwait, Qatar, Bahrain and Oman – includes the establishment of a system linking a common system of payments and settlement.
According to the approved goals, the planned link will be dedicated to the implementation of transfers and settlement of payments and payment orders among the GCC countries, with an emphasis on enhancing the safety and efficiency of the joint Gulf payment systems to reduce any potential risks to them in a manner that leads to maintaining the financial stability of the GCC countries, according to the newspaper “Asharq Al-Awsat.” “.
The new project stressed the establishment of the supervisory and supervisory powers of the central banks on the payment systems among the GCC countries, as well as the strengthening and development of clearing processes with the mechanism and procedures agreed upon by the central banks.
The prospective linkage system disclosed authorizing the central banks to establish a regional infrastructure and maintain its integrity to be the pillar upon which the common payment systems among the Gulf countries are based by “providing a real-time settlement system, supporting dealing with the local currencies of the GCC countries, and promoting integration among financial markets.”
The terms of the agreement disclosed that the tasks and powers of the central banks in the Gulf countries are based on establishing, owning and appointing companies to manage and operate the system in accordance with the controls approved by the Committee of Governors of Central Banks – formed by central bank governors, in addition to participating in the system in accordance with the approved terms, rules and controls.
Central banks will work on developing payment systems and services related to the new network, ensuring the transfer and settlement of transactions executed through the system, approving the exchange value between the currencies of the GCC countries and other currencies in the system, and managing liquidity and financial guarantees to serve the work of the system.
Gulf central banks will put in place the necessary mechanisms to provide appropriate protection for the settlement of cross-border transactions, including the establishment of a fund to guarantee settlements, and the implementation of acceptable payment orders for the participant, in accordance with the terms and rules approved by the Committee of Governors, as well as defining the conditions of local participants in the system.
The system will notify the operator directly in the event that any participant is unable to comply with the conditions and controls for default approved by the Committee of Governors, and central banks will work to develop a strategy to avoid risks in all its forms and develop various services.
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