USE GOLD DINAR FOR TRADE, URGES DR M

LANGKAWI (Kedah, Malaysia), Dec 15 (Bernama) -- Global trade should have
reverted to the use of gold dinar following the decline in the value of the US
dollar, said former Malaysian prime minister, Dr Mahathir Mohamad.

He said since the price of gold was difficult to fall, it was suitable for
use worldwide compared with the US dollar now.

"At one time, US$35 was equal to one ounce of gold. But today, it is worth
US$1,400, meaning the US dollar has already depreciated.

"That's the problem with fiat currency ... it devalues quickly and by very
much. Gold never devalues like that.

"So, when you buy and sell using gold dinar, you get the real value," he
told reporters after delivering his keynote address at the 2nd Langkawi Islamic
Finance and Economics Conference, which ended here Wednesday.

On the gold dinar in Kelantan state, he said, it was not suitable to be used
as legal tender but for import and export.

Dr Mahathir said Islamic countries should use Islamic financial system to
help poor Islamic nations.

"Although there are rich and poor Islamic countries, there must be a
balance. We use Islamic finance to invest in the poor Islamic countries and help
make them rich," he said.

He said it was important Islamic system grew by itself and the countries use
it to benefit the Islamic countries.

"The Islamic financial system will grow when we are successful. Nowadays, we
see that non-Muslims are using Islamic banking," he said.
-- BERNAMA