Saturday, 21 February 2009 23:16
KUALA LUMPUR, Feb 21 (Bernama) -- Malaysia has the means to increase the value of national reserves if Bank Negara Malaysia converted its international reserves to the gold dinar instead of foreign currency.
"Malaysia can obtain as much as RM162.6 billion for this year if the reserves were in the form of gold dinars following the rise in the price of gold globally.
"If we follow the current value, one gold dinar is worth RM518 with the lowest value being one Dirham (RM5)," said the Kelantan State Exco, Datuk Husam Musa in tabling a working paper at the Gold Dinar Seminar 2009 at University Malaysia (UM) here today.
"The price of one gold dinar this year increased 11.07 percent to RM512.20 compared to RM461.15 last year," he said.
Husam said the global economy at present was too dependent on the current currency system and reports show Bank Negara's international reserves kept in the form of gold, constituted only 0.4 percent compared to foreign currency in US dollars last year.
"As such, the use of the gold dinar can be an alternative means of settling the economic crisis due to its stable nature, compared to the use of currency in international trade," he said.
Meanwhile, the Vice-Chancellor of UM, Prof Datuk Dr Ghauth Jasmon while officiating the seminar, also said that the use of the gold dinar needs to be exposed at the early stage of university, so that the community will become aware of its alternative to the use of currency in economic activities.
"However, many things need to be done so that the global community understood its use whch can become an alternative means towards restoring economic stability arising from the global economic crisis," he said.
The Kelantan state government had introduced in 2006 the Emas Dinar Kelantan in various denominations.