Anwar Ibrahim, the visiting Malaysian deputy prime minister and finance minister, said Tuesday that his nation and Japan are discussing the possibility of making the yen a trade settlements currency to help stabilize regional currencies in the future.
He said Malaysia is pursuing the idea of ensuring bank settlements using the yen, adding that the reaction of Japanese Finance Minister Hikaru Matsunaga has been positive. But at the same time, he said, it would be unwise to believe the yen could replace the dollar, adding he would just like to offer countries in Asia the option of dealing in a few stable currencies at one time.
Anwar is in Tokyo to attend a symposium Monday and also held talks with senior Finance Ministry officials as well as executives at private sector firms and financial institutions. Anwar reiterated his desire to see Japan make its presence in the region more pronounced through domestic reforms in the areas of administration and finance, which would in turn boost internal demand and open its markets to Asian goods.