Islamic Single Currency

Khalid Yousuf thinks that the time is ripe for the introduction of a single currency for the Islamic world. He calls for the GCC nations to take the lead in adopting it before getting the entire OIC on board.

The awareness of its separate identity, its strengths and weaknesses, threats and opportunities stands more pronounced than ever before. Whereas the vast majority of Muslim population continues to live in poor conditions and the economic gap between the rich and the poor is widening further, the need for economic and financial integration through strong political leadership is emerging as the need of the hour.

The creation of Islamic Dinar would address not only the problems related directly to the pricing of exports, but also to more fundamental corrections and management of the underlying economies.

Given that the Islamic world has vast resources of population, land, minerals, oil and gas and marine stocks, all countries would benefit from the unification of monetary policies relating to a single currency.

Further, the inter-country trade, albeit currently small at around 5 per cent, would benefit from stable currency values and safeguard producers and consumers alike by protecting them against the undesirable fluctuations in exchange rates.[Gulf News]

Interesting thought. But countries like Malaysia & Indonesia need to decide if they want to grow closer within ASEAN or join this new club.