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Govt to revisit using gold dinar as reserve currency - PM

Publish date: Tue, 17 Oct 2023, 02:01 PM

KUALA LUMPUR: The government will revisit the idea of using the gold dinar as a reserve currency, the Dewan Rakyat heard today.

Prime Minister Datuk Seri Anwar Ibrahim said the matter will be discussed during the upcoming meeting on Islamic economics and finance held in December. 

"We want to start it (the use of gold dinar), despite limited conditions.  

"As I have mentioned earlier, our trading with China using ringgit and renminbi is at 25 per cent. 

"If we can get between five and six per cent with Islamic countries (using dinar), it would be a positive start as it provides strength and reduces dependency on the US dollar," he said during the Prime Minister's Question Time today. 

Anwar was responding to a supplementary question from Ku Abdul Rahman Ku Ismail (PN-Kubang Pasu). 

Ku Abdul Rahman had asked about the use of gold dinar and if using it would encounter resistance from countries using the US dollar. 

Anwar in his reply also said that the use of gold dinar gives the country an alternative, subsequently strengthening the domestic strength of each country's economy. 

"Islamic countries are familiar with the dinar. Furthermore, with growth exceeding USD1 trillion in the halal industry, other countries are well-informed about the position of the dinar," he said. 

Earlier, Anwar in replying to the initial question said the use of ringgit when trading with several countries in line with "dedollarisation" has shown some encouraging development. 

He said the use of local currency for trade was well-received particularly by China and Asean countries, namely Indonesia and Thailand.

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Gold dinar can be used to trade in palm oil exports for example

2023-10-17 15:21

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