Gulf monetary council 'on track'

Kuwait is one of four Gulf nations to join the union

The Gulf monetary council, the prelude to a single currency in the region, will be established in 2010, according to the Saudi central bank chief.

Earlier this month, Kuwait called for the council's launch to be delayed.

The proposed council has been beset by problems, with Oman and the United Arab Emirates saying they will not join up.

But Mohammad Al Jasser, head of the Saudi Arabian Monetary Agency, said he hoped the two states would join the council at a later date.

"The council will be established in 2010. It will be entrusted to complete other procedures," Mr Al Jasser said at a conference in Kuwait.

He added that Oman and the UAE were still in talks about the creation of the council.

Kuwait, Saudi Arabia, Qatar and Bahrain signed an accord in June to create a joint monetary union council as a precursor to a Gulf central bank.

Earlier this year, the UAE withdrew from the plans as it objected to the Saudi capital Riyadh being chosen to host the bank. It said it would be keeping its own currency, the dirham, which would remain pegged to the dollar.

Oman has said it is not ready to meet the preconditions for joining the council.