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 Kuala Lumpur, Oct 24, IRNA -- Prime Minister Dr Mahathir Mohamad has agreed with Iran proposal to set up a secretariat in Malaysia to use the gold dinar among central banks of world Muslim countries. "Iran is keen, so we might do this with them," he told newsmen after closing the International Seminar on Gold Dinar in Multilateral
Trades organized by the Malaysia's Institute of Islamic Understanding (Ikim).
Dr Mahathir said he would inform the Cabinet of the proposal and if there was agreement, Bank Negara (Central Bank) would be informed.
Earlier during a question-and-answer session, Iranian central banker Bijan Latif had suggested that Malaysia set up a secretariat here to provide information on the concept.
Dr Mahathir had responded that it was a good idea to have a secretariat here to facilitate communication with central banks of other Muslim countries to explain the concept and examine the laws to allow the use of the gold dinar.
In the session, Ikim chairman Ahmad Sarji Abdul Hamid outlined some of the proposals and issues that needed to be examined before implementation.
He said there was an existing prohibition by the International Monetary Fund (IMF) on the use of gold as a medium of payment and the proposed gold dinar would be a potential violation of the rule. He said there was also a need to study the effects of using a dual currency system tool and whether this would impede the growth of the
gold dinar .
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