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President of the Arab Monetary Fund: the weak dollar could push the «Gulf» to raise the value of their currencies
2010-11-02 14:09:02

Forum Kuwait continued its fiscal second in its third meeting yesterday where he discussed the next phase in the economies of the Arab region and the policies needed to restore the path of growth and the achievement of the required development projects in the region.

The Director General and Chairman of Board of Directors of the Arab Monetary Fund, Dr Jassim Al Mannai, in his speech at the conference, said the weak dollar could push the GCC countries to revalue their currencies, stressing that our region does not enjoy immunity at war currencies because of the dollar peg, he said, adding that the economic changes and developments represent one the most important reasons in the progress of the Arab world economy, especially since it is closely linked with the global economy, noting that the Arab economy depends on natural resources and is heavily influenced by the oil market in terms of demand, supply and prices.

Regulatory legislation

Has focused immune to a number of themes was the first of the legislation on Banking Supervision of the importance of variables global economic because of its effects and implications, noting that he opposed the view that he does not fear us in this region for the applicable standards, saying that he loves to be more conservative because these variables will be reflected on the movement of capital and the cost of borrowing, and thus on economic performance.

Mannai said that the impact of legislation on the rate of economic growth will be one addresses the next phase and affecting the economies of the Arab world.

He asked the immune talking about the second axis than if we had learned the lessons that were produced by the financial crisis, such as bubbles, and others, and whether we can develop legislation to ensure the absence of similar crises, and there are funds invested in financial markets and focused on speculation and suffered heavy losses, is there a guarantee of return of investments perilous to the market, with that we have to admit that the authorities had major effort to address the crisis, but we hope to be to anticipate crises before they occur, rather than confront them and address them after the fact.

The flow of investments

In the third axis, which he said would be one addresses the next stage, occurring immune investment flows to developed markets and developing countries alike, said that in light of the lack of availability of investment opportunities in the markets of developed countries have tended investment into developing markets strongly, is that the influx has led the hottest of these economies and create inflation and raise the prices of the currencies of these countries, noting that the economies are still unprepared to deal with these developments. Was aware of some of these countries such as Brazil, Thailand and other Asian countries to the problem and the result of placing restrictions determine the movement of capital.

As the International Monetary Fund decline in attitudes toward this issue, saying that it was hard to leave the rope at liberty for the movement of capital without the supervision or control, turning on his earlier position when he was urged not to oppose the movement of these funds.

Economic reforms

The fourth axis, in a speech by Dr. Jassim Al Mannai, relates to the economic reforms and praised its usefulness given that the countries that these reforms economies began to recover, and said that the reform of public finance for the countries of the region is very important, in addition to the ongoing cost control and restore balance to the budget structure.

And topics related to this axis need to stop the wastage of a large exposed budgetary funds of the State under the banner of support, which goes to those who deserve and those who do not deserve. For example, there to support gasoline prices, to whom goes the support to the owners of luxury cars or to the occupants of huts and houses Simple, as well as support prices of electricity consumption, and many more.

The political situation

The last theme in a speech by Dr. Jassim Al Mannai, pointed to the increasing conflicts in the Arab region, accompanied by political instability from the Sudan to the north and south Yemen, from Iraq to Lebanon, as well as tensions high, saying they all do not represent any structure suitable for development or to improve the standard of living of their peoples, as well as its serious consequences.

He said it was difficult to talk about investment in the presence of armed conflict and if they were not there reforms, and examples that Lebanon, which are debts the highest debts in the world, despite efforts to reduce debt but could not because of the continuing conflict so far.