Global switch to Islamic finance needed: Ahmadinejad

The global economic order needs "radical change", Iranian President Mahmoud Ahmadinejad said on Monday, calling for the adoption of Islamic principles instead of capitalist values.

"The present economic crisis is due to the capitalist system. The world needs radical change," Ahmadinejad told a one-day economic summit of the Organisation of the Islamic Conference (OIC).

Describing interest rates as the "biggest and most fundamental problem of the capitalist system," Ahmadinejad called said economic programmes based on Islamic principles offered the way out.

"The world is looking for fairer values that we cannot find in the capitalist system. The world system based on usury has collapsed, proving its failure," he said in comments translated into Turkish.

"We have to draw up programmes based on Islamic economic thinkers. That way we can guide people to happiness, security, justice and honesty. This is the most correct way to salvation," he added.

Ahmadinejad also urged member countries to agree to carrying out trade in their national currencies and setting up a common market.

"By announcing the type of money to be used between member countries, we will be saved from the adverse effects of global capitalism," Ahmadinejad added.