THE International Seminar on “Gold Dinar in Multilateral Trades’’,
which concluded yesterday, has recommended that the gold dinar be introduced
gradually.
For a start, it could be used to facilitate trades among countries
that Malaysia has bilateral payment agreements (BPAs), said Tan Sri
Ahmad Sarji Abdul Hamid, the chairman of the Institute of Islamic Understanding
Malaysia, when deliberating the highlights and recommendations at the
end of the two-day seminar.
It was imperative to adopt the gradual approach of introducing gold
dinar to preserve the stability of the existing system, he said.
Prime Minister Datuk Seri Dr Mahathir Mohamad, who closed the seminar,
said Malaysia would consider setting up a secretariat to explain the
concept of using the gold dinar for settlement of international trade.
Other recommendations were that the central banks of two participating
countries involved in bilateral trade open their respective gold reserve
accounts with a custodian bank.
Importers and exporters in the two countries will continue to make
and receive payments to and from their respective central banks in their
respective local currencies.
Settlement using gold dinar will be carried out only at the central
bank level involving periodic transfer of gold reserve accounts in the
custodian bank.
With regards to gold dinar, the central bank will play three roles
– the development role, payments agent, and custodian of external reserves.
With regard to the adequacy of gold to facilitate the use of gold dinar
in international trades, due to the nature of the settlement mechanism,
a minimum amount of gold dinar will be required to settle the trade
balances between two countries. — Bernama
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THE GOLD DINAR RESEARCH GROUP 