Malaysia to ‘seriously’ explore settling foreign trade in local currencies
Malaysian Prime Minister Anwar Ibrahim announced that Malaysia is seriously exploring the use of local currencies for foreign trade to reduce reliance on the US dollar. This strategy aims to mitigate exchange rate risks and has already seen success in bilateral trade with China.
Why it matters
It highlights a broader geopolitical shift among emerging economies seeking to diversify financial systems away from Western-dominated mechanisms.
Share Prime Minister Anwar Ibrahim cites the success of such bilateral payment arrangements, particularly with China. Prime Minister Anwar Ibrahim is currently leading the Malaysian delegation to the Asean-Russia Commemorative Summit in Kazan, Russia. (Facebook pic) KUALA LUMPUR : Malaysia will “seriously” explore the use of local currencies with its trading partners to mitigate volatile foreign exchange risks, says Prime Minister Anwar Ibrahim. He said Malaysia is already trading significantly with China and Russia, while India has agreed to begin using its currency for trade or engage in barter arrangements.
The article reports on government policy and economic strategy without taking a stance on the efficacy of the move.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in