Najib wants more Malaysia-China trade to be conducted in local currencies

Prime Minister Datuk Seri Najib Tun Razak wants more trade between Malaysia and China be conducted in local currencies.

Najib said to-date, the trade conducted in local currencies stood at a meagre 2.5 per cent of overall trade between the two nations.

"The appointment of Bank of China as the renmimbi clearing bank in Kuala Lumpur will help trigger higher volume of trading in the local currencies," he told reporters here today.

The media conference was in held in conjunction with the official visit of China's Prime Minister, Li Keqiang, today.

Najib said Malaysia also welcomed the extensive financial cooperation between the two countries through facilitating the use of local currencies to support the growing cross-border trade, investment and financial flows over the years.

These initiatives included the currency swap and cross-border collateral arrangements, the direct currency trading between renminbi and ringgit, the designation of a renminbi clearing bank in Kuala Lumpur, he said.

"Apart from that, we also welcome the People's Bank of China's plan to grant RMB50 billion Renminbi Qualified Foreign Institutional Investor quota to Malaysia," he said.

Malaysia and China today signed eight government-to-government memorandum of understandings (MOUs) between the two countries to improve relationship in trade, cultural and administration.

Following the signing of MOUs, both sides reaffirmed their commitment to work together in building a positive, wide-ranging Malaysia-China partnership based on mutual respect and mutual benefits and further strengthening the Comprehensive Strategic Partnership, which serve the interests and well-being of the peoples of the two countries.