KUALA LUMPUR: Some 28% of trade transactions with China, amounting to billions, will be done in ringgit in a move to reduce dependency on the US dollar, said Datuk Seri Anwar Ibrahim.
“This was well received by China and some 28% of transactions amounting to billions will not use the USD, but done through the ringgit,” he said when replying a question raised by Datuk Awang Solahuddin Hashim in Parliament. Dr Wee asked if there would be a policy for GLICs to rely on the ringgit for their transactions as a means to build up their reserves in the local currency.
“This means that the ringgit is not in line with economic fundamentals, policies, position or argument. It is dependent solely on the action by the US Federal Reserve to raise the rates. This poses a problem with regard to volatility,” he said. “His assumption is that there will be a direction towards convincing growth by the end of this year based on the data and figures we have received,” he added.However, he said other regional currencies were also affected, such as the Japanese yen , Thai baht , South Korean won , and China’s renminbi .