Malaysian government will revisit use of gold dinar as reserve currency

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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.

 
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.
 
Prime Minister Datuk Seri Anwar Ibrahim had better hope he doesn't get "Gaddafi'd"
 
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
 
In the US we already have gold and silver coins as legal under. No one wants to use it. LOL.
 
Cigarlover said:
In the US we already have gold and silver coins as legal under. No one wants to use it. LOL.
Click to expand...
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?
 
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 said:
... Is the gold dinar similarly issued with a nominal legal tender face value?
Click to expand...

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. ...
Click to expand...

Modern gold dinar - Wikipedia

en.wikipedia.org en.wikipedia.org

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