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Ringgit, Yuan Use Expands in Trade with China
🇲🇾 Malaysia /Economy & Trade

Ringgit, Yuan Use Expands in Trade with China

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

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  • Malaysia and China are expanding the use of the ringgit and yuan in trade transactions, now reaching 18% compared to 5% previously.
  • Prime Minister Anwar Ibrahim stated this move aims to create a more diverse and resilient trade system, not to sideline the US dollar.
  • This initiative broadens trade currency options beyond the dominant US dollar.

The use of the ringgit and yuan in trade transactions between Malaysia and China is expanding significantly, with current figures reaching 18 percent compared to just five percent previously. This shift indicates a growing confidence in regional currencies for international commerce.

Prime Minister Datuk Seri Anwar Ibrahim clarified that the expansion of ringgit and yuan usage is not intended to displace the US dollar. Instead, he emphasized that the goal is to foster a more diverse and resilient trade system. This approach seeks to reduce reliance on a single currency and build greater economic stability.

The move signifies a broader trend towards de-dollarization and the strengthening of alternative currency frameworks in global trade. By facilitating direct transactions in local currencies, Malaysia and China aim to streamline trade processes, reduce currency conversion costs, and enhance economic cooperation.

This is not... to sideline the US dollar, but to create a more diverse and resilient trade system.

— Anwar IbrahimPrime Minister Anwar Ibrahim explained the rationale behind expanding the use of the ringgit and yuan in trade.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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