The government, together with Bank Negara Malaysia (BNM), is now increasingly active in reducing its dependence on the US Dollar by expanding the use of local currencies in regional trade.
Finance Minister Datuk Seri Anwar Ibrahim stressed that this effort is aimed at reducing the risk of foreign currency fluctuations and strengthening the country's economic resilience.
This move is also in line with the implementation of the ASEAN LCT Framework, which was agreed last August, to strengthen regional transactions using their respective currencies.
Anwar explained that the increasing demand for transactions in local currencies has led the government to continue strengthening existing channels to facilitate trade and investment without being overly dependent on the USD.
Is this a bold move by Malaysia towards a regional trading bloc that is more independent of dollar dominance or is it just a temporary move before it bows down again to keep Washington at bay?
