The Malaysian government will revisit the idea of creating an Islamic gold dinar and using it as a reserve currency to boost trade with Islamic countries and weaken the impact of the US dollar on Malaysia’s economy, Prime Minister Anwar Ibrahim said.
The Islamic Gold Dinar, a project aimed at restoring the gold standard, was first proposed in 2001. The main objective of this initiative is to create a gold-backed international currency for use in the Muslim world.
Ibrahim added that the use of the gold dinar would give Malaysia an alternative to the dollar, which would subsequently “strengthen the power of the country’s economy”.
Earlier, Ibrahim noted that Indonesia, Thailand and China had agreed to use the Malaysian ringgit in trade with Malaysia.