Malaysian government will revisit use of gold dinar as reserve currency

[searcher]

From the link:

KUALA LUMPUR: The government will revisit the idea of using the gold dinar as a reserve currency, the Dewan Rakyat heard today.

Prime Minister Datuk Seri Anwar Ibrahim said the matter will be discussed during the upcoming meeting on Islamic economics and finance held in December.

"We want to start it (the use of gold dinar), despite limited conditions.

"As I have mentioned earlier, our trading with China using ringgit and renminbi is at 25 per cent.

https://www.nst.com.my/news/nation/2023/10/968034/govt-revisit-using-gold-dinar-reserve-currency-pm

 

[nickndfl]

The best thing the 'bad guys' from BRICS and othets could do is bring back honest money. There would be no debate who had the better plan.

 

[JayDubya]

Prime Minister Datuk Seri Anwar Ibrahim had better hope he doesn't get "Gaddafi'd"

 

[Goldhedge]

Looks like Malaysia needs some democracy...

 

[pmbug]

It's unclear from the article what they are proposing exacy:

- Using gold dinar only for savings as part of their reserve portfolio

- Using gold dinar for settlement of international (bilateral) trade

- Making gold dinar legal tender

 

[Cigarlover]

In the US we already have gold and silver coins as legal under. No one wants to use it. LOL.

 

[pmbug]

In the US we already have gold and silver coins as legal under. No one wants to use it. LOL.

It's not a true competition with the dollar since they were given nominal legal tender face values well below their metal value. They are also subject to capital gain taxes so it is complicated to use them even if their face value were close to their metal value.

I guess that begs another question... Is the gold dinar similarly issued with a nominal legal tender face value?

 

[Cigarlover]

I think a better way would be gold and silver coins with no face value. Just certified weights and purity. Anytime I have transacted using metals we always went by spot price and face value didn't matter.
As for the cap gains tax. That needs to be eliminated on any metals used as currency IMO. Saying the value of my currency went up and in addition to the income tax I also need to pay a cap gains tax is insanity in any real world situation.
Can I write off the loss of value every year on my loss in the value of the dollar? LOL. If so the government would never have any revenue.

 

[pmbug]

I think a better way would be gold and silver coins with no face value. Just certified weights and purity...

I agree 100%. That's what I was advocating here:

Gold As Unpegged Legal Tender

Gold As Unpegged Legal Tender We need to level the currency playing field to enforce a practical, market based boundary on irresponsible monetary and fiscal policy. Poor System Design Our Founding Fathers understood the problems with fiat money and monetary debasement. They attempted to...

www.pmbug.com

 

[pmbug]

... Is the gold dinar similarly issued with a nominal legal tender face value?

According to wikipedia:

... The value of each coin is according to their weight and the market value of the two metals. Coins may be minted at fractions or multiples of these weights and valued accordingly. ...

Modern gold dinar - Wikipedia

en.wikipedia.org

So no nominal face value. It's just an alternative form to holding LBMA standard bars I guess.