'You should do a one time re-evaluation. Keep it stable and keep it fixed. But a one time re-evaluation would be appropriate to correct the mistakes made by the Federal Reserve.'
He said the current high price of gold was an indication of the need for such a move, but did not advise moving to a basket of currencies.
'Even though the pound, yen and euro have appreciated they all have inflation. They have all sinned, but the Federal Reserve is the biggest sinner of all,' he said.
If the dollar continues its current inflationary trend, then GCC countries can look again at whether to move a basket of currencies in the future, he added. But by re-evaluating, it would give governments time to make a decision.
Forbes also advised soverign wealth funds looking to take bigger chunks of foreign companies to move slowly, allowing those governments to see decisions were being made for business reasons.
He pointed to the furore in the US after DP World tried to take over the country's ports. If a fund wants to takeover large foreign companies, use private companies to do so, and that way 'people can see it is for business reasons', he said.
Revalue dollar peg, Leaders told
Dollar pegged Middle East countries need to revalue their currencies to correct the mistakes made by the US Federal Reserve, delegates at Leaders in Dubai were told this morning. Steve Forbes, President, CEO and Editor-in-Chief of Forbes magazine, said that currencies should continue their peg because to float would be an 'invitation for chaos', but re-evaluate not devalue their currencies.
Middle East: Sunday, November 18 - 2007 at 11:46
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Rob Jones, Editorial DirectorSunday, November 18 - 2007 at 11:46 UAE local time (GMT+4)
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This Article was updated on Saturday, November 24 - 2007
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