The government is committed to promoting the use of local currency in international settlements and will periodically enhance mechanisms with strategic partner countries.
In a written response published on Parliament’s website yesterday, the Ministry of Investment, Trade and Industry (MITI) stated that the government remains open to expanding the use of regional local currencies with major ASEAN countries, including Vietnam and the Philippines, alongside BRICS members such as Russia and India.
MITI’s comments came in response to a question from Oscar Ling Chai Yew (PH-Sibu) regarding the potential for cooperation with Brazil, Russia, India, China, and South Africa (BRICS) to assist Malaysia in dedollarisation, or reducing dependence on the US dollar.
The ministry noted that while one of the BRICS initiatives aims to decrease reliance on any foreign currency, the United States dollar continues to play a significant role in the global financial system. Therefore, the use of alternative currencies in trade and investment requires careful consideration by the government.
“Any decision must be made in the country’s best interests and align with current policies,” MITI added.
Since 2014, BRICS countries have been exploring various strategies to reduce their dependence on the U.S. dollar, increasing the use of their local currencies in international trade and finance. “For example, China and Russia frequently use the yuan and the rouble in their trade transactions,” MITI highlighted.
