Monday, November 1, 2010

Dr M: Gold dinar will end currency wars

KUALA LUMPUR: The use of the gold dinar in settling international trade should be considered as a way to end the currency war, said former Prime Minister Tun Dr Mahathir Mohamad.

He also said the dinar should be used to settle international trade and not as a domestic currency as it was cumbersome; however, he said the gold bullion could be kept as savings.

Speaking to reporters after delivering his keynote address at the 1st World Conference on Riba (interest/usury) here on Monday, Nov 1, Mahathir said the devaluation of currencies would contribute to worsening the global economic crisis.

"The ringgit is still undervalued (as it was once at 2.5 to the US dollar, pre-1997 Asian financial crisis)," he said. "If our neighbours had much weaker currencies than ours, we would face stronger competition, but for now we are still competitive."


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