Dubai: The central banks of the UAE and Saudi Arabia announced the launch of a common digital currency called "Aber", which will be used in financial settlements between the two countries through Blockchains and Distributed Ledgers technologies.

Through this digital currency, both the Saudi Arabian Monetary Authority (SAMA) and the United Arab Emirates Central Bank (UAECB) are studying the impact on the improvement and reduction of remittance costs and the assessments of risks.

“It will establish an additional means for the central financial transfer systems of the two countries and enable banks to directly deal with each other in conducting financial remittances,” the UAE central bank said in a statement.

“The use of the currency will be restricted to a limited number of banks in each state. In case that no technical obstacles are encountered, economic and legal requirements for future uses will be considered,” it added.

The executive committee held its first meeting in Abu Dhabi on Saturday and the strategy was announced.