Nobel laureate joins Central Bank

A Nobel Prize-winning economist who lay the groundwork for the creation of the euro is part of a team of international experts hired by the UAE Central Bank to guide future financial policy.

Nobel laureate Professor Robert Mundell and Sir John Bond, a former group chief executive and chairman of the UK banking giant HSBC, have been appointed to the newly formed International Advisory Council.

Dr David Dodge, a former governor of the Bank of Canada, and Dr Joseph Yam, the executive vice-president of the China Society for Finance and Banking, take the other seats on the council.

"In a world of highly challenging and rapidly changing financial landscape, the UAE Central Bank needs to learn from the experiences of this group to improve the UAE's financial and monetary stability and Central Bank governance," the Central Bank said in a statement released yesterday.

The first meeting of the council on Monday included discussions about regulations, as well as the organisational structure of the Central Bank. Sultan al Suwaidi, the Governor of the Central Bank, also attended the meeting.

The regulator has scored a significant coup by recruiting a diverse range of financial experts with decades of experience in both government and corporate life.

The move comes as the Central Bank seeks to rekindle economic growth and overhaul regulations of the financial sector after the global crisis.

Prof Mundell of New York's Columbia University won the Nobel Prize in Economics in 1999 for his work in preparing for the euro.

Sir John is the chairman of the telecommunications company Vodafone.

He was with HSBC for 45 years, in which time he served as chairman and as chief executive. Between 1998 and 2003 he also chaired the Institute of International Finance (IIF).

Dr Dodge co-chairs the Global Market Monitoring Group of the IIF. In 2001, he was appointed governor of the Bank of Canada for seven years. He also served as the deputy minister of finance in Canada.

Dr Yam was instrumental in establishing the Hong Kong Monetary Authority in 1993 and was appointed its chief executive before retiring in September last year.