As Asia intensifies its efforts to distance itself from the hegemony of the U.S. dollar, more proposals and currency ideas are emerging.
China and Malaysia are contemplating advancing discussions on an Asian Monetary Fund, as a move away from the dominance of the U.S. dollar becomes a greater priority in the region.
According to Ibrahim, Chinese President Xi Jinping encouraged discussions on a proposed agency that would assist the two countries — and others in the region — in distancing themselves from the U.S. dollar and the International Monetary Fund.
Malaysia is one of several Asian nations seeking independence from the greenback. Its central bank collaborates with the People’s Bank of China to facilitate transactions in their respective currencies.
China and Brazil agreed to conduct all transactions in their respective national currencies, eliminating the dollar, at the end of March.
According to Cointelegraph, a Russian official discussed a new currency for the BRICS alliance at the end of March. Incorporating the burgeoning economies of Brazil, Russia, India, China, and South Africa, would be another effort to distance itself from the currency.
Researchers from the Chinese government proposed a digital currency based on a basket of Asian currencies in October 2022.
Alex Lo, a columnist for the South China Morning Post, speculated on April 4 that additional factors for dollar distancing may exist.
The dollar’s demise as the world’s reserve currency could have a significant effect on its value relative to other currencies and crypto assets.
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