The international financial crisis will not end this year or in 2010 – and no one can predict when it will, said the Arab Monetary Fund (AMF).
“Nobody in the world can predict when the crisis will end and how far its repercussions will reach,” said Dr Hazem Elbeblawi, an advisor to the fund.
Asked by Emirates Business about the extent of the losses suffered by the region as a result of the meltdown – said by some commentators to have reached $1.5 trillion (Dh5.5trn) – he replied: “There is no accurate figure and no Arab research institution has confirmed a figure.
“The impact on the banking sector here has not been as large as it was in Europe and the United States. The reason for is that our banks did not have large investment portfolios in overseas banks and do not face a real estate mortgage crises, as it is the case in the US.
“However this does not mean our countries have not been affected – they have been affected. Arab states will face real economic problems, which will differ from one country to another. This will have to be tackled through the implementation of new and flexible monetary policies.
“The AMF will attempt to achieve financial and monetary stability for its member-states. It will offer new facilities to help countries to deal with the crisis at the meeting of Arab central bank governors due to be held in Amman in April.”
Dr Elbeblawi was speaking at a two-day forum in Abu Dhabi organised by the Arab Monetary Fund to brief officials from GCC central banks about the crisis.
Dr Franziska Schobert from the Deutsche Bundesbank spoke about European monetary union.
“Monetary union came into force in 2002 when the member-states approved the launch of the euro as a unified currency,” he said at the forum yesterday.
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