Former Malaysian Prime Minister Mahathir Mohamad who was in power during the 1997 Asian financial crisis, said at a forum on Tuesday that no single currency should be dominant.
Since the crisis in South East Asia, Mahathir has made the case that Asia should decrease its reliance on the dollar as fluctuations can create economic convulsions.
“No single currency should be made the international currency,” Mahathir said, regarding the yuan’s role in fostering financial stability. “The best thing,” he said, “[would be] to have a special international currency,” such as a common trading currency whose value [is] linked to gold, so that movement of value is small. “If China wants to make the renminbi [yuan] an international currency, it should be anchored to the value of gold,” he said.