A common GCC currency is the main issue, it has to be and it will be the main issue of the conference, Sultan bin Nasser Al Suwaidi, UAE Central Bank Governor, said on the sidelines of the sixth edition of the GCC Banking Conference being held at the Al Bustan Palace Hotel.

"We have to follow the example of the European Union, who have handled the currency fluctuations very well," Al Suwaidi added.

However, he pointed out that GCC states had achieved a major breakthrough in this direction and all the currencies are finally pegged to the U.S. dollar.

The Governor of Bahrain's Monetary Union, Sheikh Ahmed bin Mohammed Al Khalifa said the issue of common currency in the GCC was different from EU. "It is unique to the GCC and have we have to handle it accordingly."

He agreed that Europe's example was recent and would help the GCC goal of common currency. Hamoud Sangour Al Zadjali, executive president of Central Bank of Oman, felt that liberalisation of financial services, common currency and corporate governance were key issues facing the region.

He said the conference is held every two years to discuss the most pressing subjects faced by the banks in the region. It would discuss money laundering and financing of terrorism on the concluding day today.

The conference has brought together nearly 400 senior banking and finance officials from the Gulf as well other countries. It will discuss euro in context of GCC common currency, liberalisation of financial services within the WTO, fighting money laundering and financing of terrorism, Basel's new capital accord and corporate governance.

"A healthy and stable financial system, supported by sound macroeconomic management and prudent regulations, is an essential requirement for sustained economic growth," said Talal Abu Ghazaleh, in his address to the conference yesterday.