KUALA LUMPUR, Nov 4 — Malaysia aims to enhance the use of local currencies in cross-border trade and investment transactions through BRICS cooperation, thereby reducing transaction costs and foreign exchange risks.

The Ministry of Finance (MOF) said the move also aims to strengthen the country’s financial resilience against external shocks while providing businesses with more options for conducting international transactions.

It said wider use of local currencies could improve the efficiency of foreign exchange exposure management and support the development of regional foreign exchange markets.

“An increase in transactions using regional currencies, including those of BRICS member countries, could also enhance liquidity and support the development of regional foreign exchange markets, thereby providing businesses with more options,” the ministry stated to the Dewan Rakyat.