Operational challenges in move away from the greenback

Malaysia’s industry insiders say any move away from the greenback as the currency of choice in trade settlement could be slow and gradual, led by trade invoicing. — Reuters

CHINA’S growing economic role in international trade and investment, and the diversification of reserves holdings by central banks into various currencies have revived the politics of currencies and talk of dedollarisation.

Malaysia’s industry insiders say any move away from the greenback as the currency of choice in trade settlement could be a slow gradual one led by trade invoicing by companies seeking more certainty and capacity to match their prices with costs by invoicing in the local currency, and not to be confused with dedollarisation.