KUALA LUMPUR: The government will continue to promote the use of local currency in international settlements and periodically enhance mechanisms with strategic partner countries.
The Ministry of Investment, Trade and Industry (MITI) said the government remains open to expanding the use of regional local currencies with major ASEAN countries, including Vietnam and the Philippines, as well as BRICS members such as Russia and India.
"Nevertheless, as the United States dollar still plays a large role in the global financial system, the use of other currencies by Malaysia in trade and investment requires careful study by the government.
"Any decision must be made in the country's best interests and align with current policies," MITI stated in a written response published on Parliament's website yesterday.
MITI was responding to a question from Oscar Ling Chai Yew (PH-Sibu) regarding whether cooperation between Brazil, Russia, India, China and South Africa (BRICS) could assist Malaysia in dedollarisation, or reducing dependence on the US dollar.
One of the BRICS initiatives is to decrease reliance on any foreign currency.
Since 2014, BRICS countries have explored various strategies to reduce their dependence on the U.S. dollar and have increased 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 said.