Malaysia wants OIC countries to reconsider gold Dinar for trade

Malaysia wants Organisation of the Islamic Conference (OIC) member countries to reconsider the use of the gold dinar for trade, especially with uncertainties in the international currency market.
In stating this today, Second Finance Minister Tan Sri Nor Mohamed Yakcop said Malaysia would attempt to hold discussions with the OIC countries so that the issue of using the gold dinar could be studied indepth.
“At this time when the currency market is uncertain and challenging, maybe it will be good for the OIC countries to look again at the role of the gold dinnar in increasing trade among members,” he told reporters here today.
Earlier he officiated the opening of Wisma Yayasan Ekonomi Sejagat here.
Former prime minister Tun Dr Mahathir Mohamad proposed the use of the gold dinar in global trade in 2002.
Nor Mohamed said with the challenging economic conditions and weaknesses in the financial system, the use of the gold dinar could be reconsidered.
“Before this, our suggestion was not well accepted by the OIC countries.
But now with the weaknesses in the financial system, maybe we can look at the gold dinar proposal again,” he said.

tunku : malaysia should have been more pro active in pushing the OIC countries and asean countries especially when pak lah was the chairman for oic/nam but fails to do so.Tun Dr Mahathir Mohamad suggested the idea of using gold in international trade for settling bilateral and multilateral trade balances among countries. The success factor here requires trade to be both quoted and settled in gold. Gold, therefore, acts primarily as a unit of account for measuring international trade. This mechanism is expected to bring about some degree of stability and justice in the international monetary order.