The Gulf and Arab countries should drop the dollar peg of their currencies and adopt a currency basket, since the dollar has damaged both global and American economies, said delegates at the fourth Dubai Police Academy International Conference.
The event, which discussed the legal, economic and security aspects of the global financial crisis, called on decisionmakers in Gulf countries to convince the US to accept a new financial and monetary world order that is governed by a basket of currencies, where the dollar's share does not exceed 25 per cent.
It proposed a new gold standard against a basket of currencies to replace the free dollar standard. And, as a first step, it said oil producers should revoke their 1970s commitment to price oil in dollars, devising a new mechanism instead in which the dollar has no big effect.
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