How much has local currency trade with China increased?

Question

Accepted Answer

Local Currency Trade With China Has Significantly Increased

Malaysia is actively exploring the use of local currencies in bilateral trade to mitigate foreign exchange risks, with significant progress noted in trade with China. This shift aims to reduce dependence on the US dollar and minimise exchange rate volatility.
Expansion of Local Currency Trade with China

Trade settled in local currencies with China has expanded to approximately 22-23 per cent of the total bilateral trade volume. This represents a substantial increase from a lower figure of about 16 per cent recorded some years ago, indicating a growing adoption of the ringgit and yuan in their transactions.
Broader Efforts in Bilateral Payment Arrangements

Prime Minister Datuk Seri Anwar Ibrahim has indicated that Malaysia is seriously considering and exploring such local currency arrangements with various trading partners. This initiative is part of a broader strategy to strengthen economic ties and create alternative payment systems.
Progress with Other Trading Partners

Beyond China, India has also agreed to commence trading either through barter or in its local currency. These developments align with Malaysia's ongoing efforts, led by Bank Negara Malaysia, to establish bilateral frameworks with key partners like Indonesia and Thailand, and recent discussions with Russia.

Reading history

Hide →

This history is cleared when the page is closed.

How much has local currency trade with China increased?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends