Asian nations eyeing an alternative to U.S. dollar hegemony
As Asian countries strive to become more self-reliant and reduce their dependence on the U.S. dollar, new proposals and currency concepts are emerging.
China and Malaysia consider an Asian Monetary Fund
According to Bloomberg, a proposal for an Asian Monetary Fund was discussed at a forum on the Chinese island province of Hainan last week, with Malaysian Prime Minister Anwar Ibrahim saying that China is open to the idea. The proposed agency would help Asian nations to move away from the dollar and the International Monetary Fund.
Several Asian countries, including Malaysia, are already working to reduce their dollar dependence. Malaysia’s central bank is partnering with the People’s Bank of China to conduct trade in their own currencies.
Other efforts to distance from the dollar
In March, China and Brazil agreed to transact solely in their own currencies, while in the same month, a Russian state official spoke of a new currency for the BRICS alliance. This would incorporate the burgeoning economies of Brazil, Russia, India, China, and South Africa.
In October 2022, Chinese government researchers proposed a digital currency based on a basket of Asian currencies.
Why the shift from the dollar?
According to South China Morning Post Columnist Alex Lo, countries are looking to move away from the U.S. dollar not just for economic reasons, but also to “escape the clutches of the gangsterism of U.S. foreign policy.”
If the dollar were to lose its position as the world’s reserve currency, its value could be impacted, affecting other currencies and crypto assets. This could also have a knock-on effect on the $133 billion stablecoin market which is dominated by dollar-pegged stablecoins.
Ecosystem
Research
News Network
About