Malaysia is pressing ahead for the use of the gold dinar, for trade
between Muslim nations.
Prime Minister, Datuk Seri Dr Mahathir Mohamad, said a secretariat
will be set up to study and promote the use of the gold dinar, as an
Closing an international seminar on the gold dinar in multilateral
trade the Prime Minister said the benefits of an international currency
for Muslim states are obvious.
Later, he told reporters that the interest in the gold dinar is growing.
Datuk Seri Dr Mahathir was responding to a request by a delegate from
the Iranian central bank.
Iran expressed its support for the use of the gold dinar which, according
to Islamic law, is roughly equivalent to 4.3 grams.
Its value is based on world demand for gold.
Datuk Seri Dr. Mahathir, who is also Finance Minister, floated the
idea in March, saying it could help prevent a repeat of the financial
crisis which devastated Asia in 1997 and 1998.
Malaysia expects to use gold dinars for trade with Islamic countries
from mid-2003, and is already discussing the system with certain Islamic
Datuk Seri Dr. Mahathir said he had his eye on a few potential partners
and that they were Muslim countries with strong and stable economies
but he did not name them.