In Asia, the fight against the dominance of the dollar is currently one of the major priorities. China has taken several steps in this direction. At the end of March, it joined forces with Brazil to put an end to the dependence on the dollar for commercial exchanges. The two countries have decided to now only use their national currencies to carry out transactions. Now, another country decides to join forces with China for the same cause.
China and Malaysia consider an Asian Monetary Fund
As we wonder who will replace the dollar, the fight against dependence on the American currency continues. Malaysia, which no longer wishes to depend on the declining currency, has decided to ally itself with China. The central banks of the two countries work together to trade in their own currencies. Additionally, the two nations are considering a way to advance discussions on the establishment of an Asian Monetary Fund.
On April 4, the Malaysian Prime Minister reportedly suggested that China favors the creation of an Asian Monetary Fund. Anwar Ibrahim said Chinese President Xi Jinping has been supportive of talks on a draft agency. The latter aims to help Malaysia and China move away from the US dollar and the International Monetary Fund (IMF).
It turns out that the creation of an Asian Monetary Fund had been envisaged in the 1990s. If the timing was bad at the time, Ibrahim argues that today Asia can achieve such a project. He has explained : “Now that the economies of China, Japan and other countries are strong, I think we should discuss this“.
There are several reasons to distance yourself from the US dollar!
Alex Lo, columnist at the South China Morning Post, recently cited several reasons to distance itself from the US dollar. According to him, on the one hand, countries wish to move away from this currency for economic reasons. On the other hand, they seek toescape the clutches of American foreign policy gangsterism, which over the past two decades has weaponized its global dominance over the dollar with increasing neglect“.
Other countries like the BRICS, including Russia and China, are maneuvering to distance themselves from the dollar. In this sense, we may be moving towards the adoption of a common digital currency for the BRICS countries. The latter consider that the currency in question is digital.
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