MALAYSIA will continue strengthening financial cooperation with BRICS countries to promote the use of local currencies in cross-border trade and investment, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also Finance Minister, said greater reliance on local currencies could help developing economies reduce transaction costs, minimise foreign exchange risks and strengthen their resilience against external financial shocks.
He said promoting local currency transactions was among the key areas of financial cooperation under BRICS, particularly in efforts to improve the efficiency of international trade and investment.
“The benefits for developing countries are primarily aimed at improving transaction efficiency and strengthening financial resilience against external shocks, in line with efforts to gradually expand the use of local currencies,” he said in a written parliamentary reply.
Anwar was responding to Tan Sri Abdul Hadi Awang (PN-Marang), who asked about efforts to pursue international financial reforms through BRICS to ease the debt burden on developing countries, which has affected their governments’ ability to provide basic necessities.
He said wider adoption of local currencies would also enable businesses to manage foreign exchange exposure more effectively.
BRICS has 11 full members currently: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the United Arab Emirates.
