No, Malaysia will not dump the US Dollar. We are not stupid.


(1) Malaysia will not dump the US Dollar because of trade reasons.

Why should Malaysia dump the US Dollar? The US is Malaysia’s 3rd largest export market (US$34.37 billion in 2022), and 3rd largest importer (US$18.08 billion). Does it make financial sense to cease using the money of its third largest trading partner?

It does make sense for Malaysia to use the Chinese Yuan for bilateral trade since China is its biggest trading partner.

As for keeping the Yuan as reserve currency, why should Malaysia place itself under the control of China, long known for non transparency in its financial dealings?


Malaysia: Main partners in trade



(2) Malaysia will not dump US Dollars because the USA remains among its largest investors.

Foreign Direct Investment is extremely important to Malaysia:

Who are the biggest investors in Malaysia?

In 2021, United States of America, Singapore, and United Kingdom contributed to the highest net inflows to Malaysia, each amounting to approximately 15.6 billion, 9.0 billion and 4.74 Malaysian ringgit respectively. 5 Oct 2022

China comes a distant 9th, dwarfed by The USA.

Net foreign direct investment (FDI) flows to Malaysia in 2021, by country


This person is talking through her nose but then, she is not exactly a financial analyst, is she?


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1 Response to No, Malaysia will not dump the US Dollar. We are not stupid.

  1. Kai says:

    Malaysia doesn’t need to dump the dollar but will increase its share of trades in RMB. Like many other countries it will also increase RMB share of its foreign currency reserves since Malaysia imports a lot from China and pay China with RMB. Ultimately, RMB will gain prominence as one of the major global reserve currencies when more countries do the same, as China is the world largest trading nation and also largest exporter.

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