Business · Malaysia Bureau
Malaysia eyes expanded local currency use in regional trade via BRICS ties
Malaysia is pursuing broader adoption of local currencies in cross-border transactions through cooperation with BRICS nations, according to the Finance Ministry. The move aims to reduce reliance on foreign currencies and strengthen regional economic ties.
LSN Malaysia ·
KUALA LUMPUR — Malaysia is seeking to increase the use of local currencies in cross-border trade and investment activities by leveraging partnerships with BRICS member countries, the Finance Ministry said on Monday. The initiative represents Kuala Lumpur's efforts to promote financial cooperation within the bloc and reduce dependency on major reserve currencies in regional commerce. Malaysia's participation in BRICS forums provides a strategic platform to explore mechanisms for settling bilateral and multilateral transactions in ringgit and other regional currencies. The approach aligns with broader efforts across Asia to establish alternative payment systems that facilitate trade while reducing foreign exchange risks and transaction costs. Officials indicated that expanded local currency usage could strengthen economic ties among member nations and provide greater autonomy in managing cross-border financial flows.