Malaysia pursuing more de-dollarisation, more trading in ringgit: PM

MALAYSIA prime minister Anwar Ibrahim said on Tuesday his country is looking to increase trading in local currency, or de-dollarisation, in order to reduce reliance on the US dollar.

“To entirely stop the reliance on the US dollar will be difficult, but Malaysia will be more active and aggressive in the use of ringgit (in trading),” Anwar told parliament.

Anwar said Malaysia had agreements with Indonesia, Thailand and China, its largest trading partner, to encourage more trade and investment in local currencies.

Anwar was replying to questions from a lawmaker on steps being taken by the government to address rising costs from the ringgit’s decline against the US dollar.

The ringgit is trading near historical lows and has lost about 7.6 per cent of its value against the dollar this year. REUTERS