The federal government does not see any problem if the gold dinar and silver dirham introduced by the Kelantan government is only for keeping and not trading in the open market.

asli capital market summit 131107 awang adek Deputy Finance Minister Awang Adek Hussin said the federal overnment would oppose if Kelantan tried to use them as currency as it was against Bank Negara regulations and could victimise traders.

"Other than open to cheating, the value of gold dinar in the international market fluctuates every second," he told reporters after presenting zakat payment to 1,000 poor people in Perupuk, Bachok, today.

Awang Adek admitted that he had used a company to produce gold dinar but it was only for keeping and not trading.

He challenged the Kelantan government to prove in four months that the move had support form various sections of the population.

"I don't think usage in that period will exceed RM1 billion," he added.

Mentri Besar Nik Aziz Nik Mat had said the Kelantan government would strive to expand the use of gold dinar and silver dirham in all transactions, including paying civil servants' remuneration.

- Bernama