TOKYO — May 30, 2019: Malaysian Prime Minister Tun Dr. Mahathir Mohamad has again proposed having a new currency based on gold as it is more stable, as opposed to the current currency trading which is manipulative.
Having the precious metal as currency means it can also be used to evaluate exports and imports within East Asia.
“We can make settlement using the new currency. That currency must relate to the local currency as to the exchange rate and that is something that can be related to the performance of that country.
“That way we know how much we owe, how much we have to pay in the special currency of East Asia,” he said during a dialogue at the 25th International Conference on The Future of Asia (Nikkei Conference) here today.
Mahathir arrived here last night for a three-day working visit.
The prime minister said the new currency can also be extended to the rest of the country, outside the East Asian region.
He noted that currently the global market is tied to the US dollar, leaving the currency to be manipulated.
“Just because that one country is affected, there is infection to other countries. Malaysia was very stable way back in 1997 but because of the problem in Thailand (during the Asian financial crisis), they said we must peg the Malaysian currency also.
“What happened? The currency traders sold the Malaysian currency down and the value of Malaysian currency depreciated.
“It is not even the money that they have, they never had any Malaysian currency but nevertheless they were able to sell huge quantities of Malaysian currency and when it is depressed then, of course, they can buy and sell it at a higher price when it comes up,” he explained.
Mahathir further elaborated that if countries are to be downgraded or upgraded, it should be done by some international uncommitted forum and not by any country.
On this note, he slammed the US for labelling countries.
“The US is fond of labelling that country is no good, this country is no good and telling countries on ways to conduct their businesses.
“You are not democratic. That is not for any single power to decide. If you want to live in a united world, stable world, we must resort to sustainability through agreement between all nations that have a stake in that problem”. — Bernama