“There is no reason for a country like Malaysia to continue relying on the US dollar in attracting investments into the country,” said Prime Minister Datuk Seri Anwar Ibrahim.
He said investment negotiations between Malaysia and other countries should use the country’s currency and the currency of the countries involved.
Anwar added that Bank Negara Malaysia (BNM) has also proposed to lead this approach in current trade aspects during its visit to China by using the Ringgit and Renminbi.
“At the Boao Forum in Hainan, I openly proposed the idea of the ASIAN Monetary Fund (AMF), because we only rely on the Dollar, or on the IMF (International Monetary Fund).”
“When I had a meeting with Chinese President Xi Jinping, he immediately said, ‘I refer to Anwar’s proposal on the Asian Monetary Fund,’ and he welcomed discussions,” Anwar told Parliament on Tuesday (4 Apr).
Anwar had earlier proposed to revisit the idea for the AMF to strengthen the buffer against economic crises.
AMF was first proposed by Japan in 1997 during the early stages of the Asian financial crisis when countries, including Indonesia and Thailand, ran into difficulties seeking bailouts.
However, the idea was met with opposition from certain Asian countries and the Group of Seven due to concerns that the AMF could undermine the International Monetary Fund and create a divide between Asia and North America, ultimately failing to materialize.
Anwar said he had proposed it during his term as Deputy Finance Minister in the 1990s, “but at that time, it did not gain much attention in Asia because the US dollar was considered very strong.”
“But now, with the economic strength of China, Japan, and others, I think it should be discussed. ”