ASEAN KEY DESTINATIONS
Malaysia sees more dollar volatility
The Group of 20 economies should consider the development of a monetary system to follow on from 1971's Bretton Woods II, World Bank President Robert Zoellick wrote in the Financial Times on Nov. 8. This may include using gold as a reference point for market expectations of currency values, inflation and deflation as they reform the global monetary system, he said.
Zeti made these remarks to reporters in Kuala Lumpur today.
On the dollar:
"We're going to see volatility. We expect that from the very beginning there is going to be increased volatility because there's increased uncertainty. So many extraordinary and exceptional developments are taking place in the global financial system and the global economy so we can expect this increased volatility. There's not going to be any comment on any specific level.
''We're on record to say that orderly foreign exchange market conditions are very important for a highly open economy like Malaysia and we are pleased to say that our foreign exchange market has been very orderly."
On whether quantitative easing by the U.S. is working:
"That is very difficult to say, this is all uncharted territory."
On proposals to use gold as a global standard:
"I think there are many proposals that came forward at different points in time. What is very important is that all these proposals are studied very carefully and the impact and implications be studied very carefully because we don't want overreactions to developments. Because they are such exceptional and extraordinary developments, we have to really study all these proposals very carefully."
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below