On Thursday the Malaysian Prime Minister said that East Asia should ponder on using a common regional trading currency based on gold for boosting commerce and to make the region free from relying on dollar transactions.
Mohammad Mahathir added that the suggested currency could be used for doing regional trade, however, it would not replace the national currencies for use at the domestic level.
He further said that in the Far East if all want to come together, then all should start with a common trading currency, which is not to be used locally but for the purpose of settling trade agreements.
PM Mahathir also said that presently all have to rely on the US dollar, but the US dollar is not stable. He said that the proposed currency should be based on gold as it is much more stable than the US dollar.
He further said that the exchange rate of the regional currency would relate to the individual performance of the countries and would assist in having a consistent regional trade.
He also said that doing this would enable one to know how much one owes and how much needs to be paid in the currency of East Asia.
Mahathir has got a reputation of being something of a financial individualist.
Back in 1998, he challenged international experts and implemented capital controls to protect the economy in mid of the regional financial crisis, and he has also got the history of being a currency trading critic.
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