Publication: The Implementation Of Gold Dinar: Is It The End Of Speculative Measures?
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Date
2002
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Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC)
Abstract
The Asian economic crisis, which occurred in 1997, hit the Malaysian and neighbouring countries economies badly. Thailand an d South Korea had to turn to IMF rehabilitation funds to ensure that they cou ld revive their economic growth. Suprisingly, Malaysia took an unorthodox wa y by implementing capital control and pegging the National Ringgit Ma laysia at 3.80 to the US dollar. Prime Minister Dato Seri Dr. Mahathir Moham d blames speculators which contributed heavily to the country's deprecia ting currency value, thus affecting the overall national economic condition. Even though the SEA countries are feeling the pain from the crisis, the ir overall economic conditions are moving towards positive reactions after several conomic measures have been taken by the affected countries. In the proces s of economic recovery, Malaysia is searching for an alternative solution t decrease the possibilities of being attacked by speculators. Prime Minister Dato Seri Dr. Mahathir Mohamad first expressed interest in a universal cur rency that could help unite Muslim countries after attending the OIC summit in Doha, Qatar, in November 2000. This paper will discuss whether the implement ation of the universal currency, or the Gold Dinar will stop the speculators� menace.
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Journal of Economic Cooperation 23, 3 (2002) 71-84