QCB Governor Inaugurates Annual Conference on Enhancing Joint Gulf Cooperation in GCC Central Bank

Annual Conference

HE Governor of Qatar Central Bank Sheikh Bandar bin Mohammed bin Saoud Al-Thani inaugurated the first annual conference on enhancing joint Gulf cooperation within the GCC Central Banks Governors Committee on the Impact of exchange rate policy, digital transformation, and artificial intelligence on financial and monetary stability in the GCC. The conference is being hosted by Qatar, coinciding with the 83rd meeting of the GCC Central Bank Governors' Committee in Doha, as Qatar holds the current presidency.

In his opening speech, HE Sheikh Bandar expressed his gratitude to the committee and the General Secretariat for the opportunity to host this inaugural conference. He emphasized that the chosen theme reflects the critical role these topics play in the region's economic framework, necessitating preparedness to keep pace with rapid changes.

His Excellency highlighted the importance of adopting sound exchange rate policies to ensure long-term financial and economic stability, noting that exchange rate policy must be tailored to the specific conditions of each country. He pointed out that the GCC's policy of pegging currencies to the U.S. dollar continues to serve as a reliable monetary tool, supporting financial stability by maintaining exchange rate stability, reducing sudden currency value fluctuations, and mitigating export revenue volatility, particularly in transactions settled in U.S. dollars.

He stressed the need for central banks in the region to balance potential risks by regularly reviewing exchange rate policies and implementing preventive and corrective measures. Additionally, His Excellency said that they must strengthen financial stability and monetary measures while developing the infrastructure of financial markets.

Regarding digital transformation and artificial intelligence (AI), His Excellency underscored the vast opportunities that fintech and AI offer in enhancing operational efficiency, product development, financial inclusion, and risk management. He cited reports suggesting that AI could boost productivity in the financial sector by about 30 percent and customer satisfaction by 20 percent. However, he also warned of the unknown risks associated with widespread AI adoption, which could have unforeseen effects on global financial stability, emphasizing the need for continued research and investment in knowledge to ensure successful digital transformation and AI integration.

He also acknowledged the efficiency demonstrated by fintech in improving customer services and emphasized the importance of its continued regulation to address emerging risks. He added that the potential introduction of central bank digital currencies (CBDCs) is another area that could enhance the effectiveness of future monetary policies.

In conclusion, His Excellency called for constant vigilance, flexibility, and quick responsiveness through forward-looking policies and adaptive risk management strategies in an increasingly fast-paced global economy.

HE Governor of Qatar Central Bank also participated in the first panel discussion of the conference alongside HE Governor of the Saudi Central Bank Ayman Al Sayari, HE CEO of the Central Bank of Oman Tahir bin Salem Al Omari, and HE Governor of the Central Bank of Bahrain Khalid Ibrahim Hamidan.

(QNA)