Malaysian-based newspaper The New Straits Times reported on Wednesday that the Malay government announced plans to replace the use of US dollars in trade among Asian countries. 

According to Deputy Finance Minister Datuk Seri Ahmad Maslan, the process will gradually take place through the establishment of the Asian Monetary Fund, an idea that was initially set forth by Japan during the 1997 Asian financial crisis and was never implemented.

"During the Asian Development Bank meeting in Incheon, I was made to understand the role of the Asian Development Bank, which involves 68 countries, and how difficult it is to develop the Asian Monetary Fund," Ahmad said.

"Prime Minister Datuk Seri Anwar Ibrahim recently re-proposed the setting up of the Asian Monetary Fund during his attendances at the Asean Summit in Bangkok, and when he was in China and recently in Labuan Bajo, Indonesia," he further said at the Dewan Negara sitting today.

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The Deputy Finance Minister noted that there are some countries that continue to use their own currencies in trade as part of the bilateral swap lines as of 2022.

"Although it is still early stages, there are three countries that use their national currency during economic exchanges with our country so far. From China; 16 percent use the renminbi. From Thailand; 16.1 percent out of all trading settlements use baht and 16.6 percent of overall trade with Indonesia still uses the rupiah."

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