SIR: After the recent Asia-Europe Summit the Malaysian Prime Minister Dr Mahathir Mohamad wisely called for regulation to end the practice of arbitrage, that is international currency speculation. The world's various national governments must undertake measures to introduce a system of fixed currency exchange rates in order to bring stability to international financial transactions. The failure of the gold-standard and Bretton Woods fixed exchange rate systems in the past ought not deter contemporary governments from seeking a return to a fixed rate system. The current floating exchange rate system invites the parasitic activity of speculators who are powerful enough to bring down any government they choose to. Can that be good for the concept of democracy?

I remember Gordon Brown calling for regulation of arbitrage back in I992. However, now that he is in office Chancellor Brown has become somewhat mute on the theme of currency speculators. Perhaps our good Chancellor has suddenly realised just how powerful these speculators are and is keeping his head down? I should like to take this opportunity to ask Ms Ruth Kelly, my MP, if she can do me a favour and use her influence on the treasury select committee to raise the question of arbitrage with Chancellor Brown. Currency speculation is a threat to every nation on earth. Anyone who doubts this only need consult a history book. All governments must unite to counter the cancer of currency speculation.

Anthony Makara

Broadwalk, Westhoughton

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