By Danial Dzulkifly
KUALA LUMPUR, Oct 10 — In a bid to shore up the ringgit, Prime Minister Datuk Seri Anwar Ibrahim said the Federal government is actively engaging in “de-dollarisation” efforts by reducing its reliance on the US dollar in trade matters.
He said as part of this strategy, Malaysia is encouraging its trade partners to conduct transactions using the ringgit.
“In a recent meeting with China and Asean leaders, I proposed that trade with our country be conducted in our local currency. China has responded positively, with approximately 28 per cent of trade, amounting to billions, now being conducted in ringgit.
“So far, China, Thailand and Indonesia have agreed to this proposal, but not all, as the dollar is still used in international commodities. This is why we use the term ‘de-dollarisation’,” he said during Prime Minister Questions Time in Parliament, here, today.
“In my discussions with Asean leaders and China Premier Li Qiang, I highlighted our dependence on the dollar. This reliance has influenced the depreciating values of our currencies, as observed with the Chinese renminbi and Japanese Yen.”
Anwar was responding to a query from Pendang MP Datuk Awang Hashim regarding the government’s plans to strengthen the ringgit — currently valued at RM4.73 to the US dollar.
Apart from de-dollarisation efforts, Anwar said the government is enacting robust policies to bolster the local economy and rolling out catalytic economic strategies under the Malaysia Madani economic framework to ensure sustainable growth.
Earlier in his response, the prime minister clarified that the value of the ringgit is not solely contingent on economic fundamentals, even though Malaysia has seen positive development on numerous fronts based on data.
“We observe reduced unemployment, increased foreign investment and an expanding national economy, while inflation has decreased.
“However, the ringgit’s depreciation does not conform to economic policies or prevailing arguments, but primarily stems from the interest rate hike in the US,’’ he said.
