Global Exchange: ‘World should move to Chinese yuan’

ISLAMABAD: The unprecedented hike in gold and silver prices suggests that investors have lost some faith in the weaker US dollar, according to Pakistan Economy Watch (PEW) President Dr Murtaza Mughal.

The development also hints at lack of confidence among investors in America’s political and economic system as well as capabilities of leaders, he said, adding that dependence on dollar has become increasingly dangerous, and calls for another international reserve currency are yet to be translated into a reality.

China is better placed to provide a reserve currency as it has the largest reserves and Chinese enjoy a focused government and few economic worries as well as challenges, he suggested.



Published in The Express Tribune, April 23^rd, 2011.