The government will set up a secretariat to study and promote the use of the gold dinar as currency for international trade if the cabinet agrees, Prime Minister Dr Mahathir Mohamad said today.

Mahathir was responding to a request by a delegate from the Iranian central bank at an international seminar on the "Gold Dinar in Multilateral Trade" here.

"If the cabinet agrees, then the Malaysian central bank will set up this secretariat," he told reporters after officially closing the seminar.

Iran has expressed its support for the use of the gold dinar which, according to Islamic law, is roughly equivalent to 4.3 grams. Its value is based on world demand for gold.