Muslim Nations Mull Barter System as Hedge on Sanctions: Reuters

(Bloomberg) -- Malaysia’s prime minister floated the idea of a barter system for Islamic countries to protect their economies against potential future sanctions, Reuters reported.

Speaking at the end of an Islamic summit in Malaysia on Saturday, Mahathir Mohamad said Muslim countries are sometimes threatened with sanctions and that it was important for them to be self-reliant. Malaysia, Iran, Turkey and Qatar discussed setting up a barter system or using gold to trade among themselves, Mahathir said, according to Reuters.

Several Arab states, including Saudi Arabia and the United Arab Emirates, cut trade ties with Qatar over allegations that it supports terrorism, claims Qatar denies. Iran has been subject to U.S. sanctions since the Trump administration pulled out of a nuclear deal with the Gulf nation last year.

Saudi Arabia boycotted the summit, arguing that it undercut the Saudi-based Organization of Islamic Cooperation, Reuters said.

To contact the reporter on this story: Chester Yung in Singapore at kyung33@bloomberg.net

To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net, Michael S. Arnold, Stanley James

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