Despite the lack of a substantial response to the idea of using the dinar since the 1990s, Anwar said it will be one of the topics for discussion during an upcoming meeting about Islamic economics and finance in Kuala Lumpur this December.

“If, at present, we were to start using the gold dinar with 5% to 6% of Islamic countries, it would be a positive start because it provides strength and reduces dependence on the dollar,” he said during Prime Minister’s Question Time (PMQT) in the Dewan Rakyat.

Anwar was responding to Ku Abdul Rahman Ku Ismail (PN-Kubang Pasu) who inquired about the use of the gold dinar as a reserve currency and whether it would encounter opposition from nations currently employing the US dollar (USD).

Rahman’s question came amid talks of de-dollarisation efforts as the ringgit is currently experiencing depreciation.

Historically, gold served as a backing for fiat currencies and also served as the world’s reserve currency for the majority of the 20th century. The US adhered to the gold standard until then president Richard Nixon terminated it in 1971.

Former prime minister Dr Mahathir Mohamad had previously advocated for the gold dinar as an international reserve currency for Muslim countries in lieu of USD as the latter was sometimes unstable.

However, this proposition garnered mixed reactions from economists, with some saying that Saudi Arabia may not be keen on the idea while others preferred a “multi-bilateral currency” to reduce dependency on the USD.

Anwar, who is also the finance minister, said the dinar presents a viable alternative to the USD, as it could strengthen the domestic economic power of a nation.

“Islamic countries, in particular, would be familiar with the position of the dinar,” he said. “Furthermore, there has been a growth exceeding US$1 trillion in the halal industry.”