Malaysia enlists China to help end USD dependence for trade
China and Malaysia are considering moving forward on discussions regarding an Asian Monetary Fund as distancing from U.S. dollar hegemony becomes a greater priority in the region.
On April 4, Malaysian Prime Minister Anwar Ibrahim reportedly said China was open to a proposal to set up an Asian Monetary Fund.
The concept of the Asian-focused fund was floated at a forum on the Chinese island province of Hainan last week according to Bloomberg.
According to Ibrahim, China’s President Xi Jinping welcomed discussions on a proposed agency to help the two nations — and others in the region — distance themselves from the dollar and the International Monetary Fund (IMF).
Malaysia is among several Asian nations trying to detach itself from dollar dependence. Its central bank is working with the People’s Bank of China to conduct trade in their own respective currencies.
1. Following the global shift away from the US dollar, Prime Minister Anwar Ibrahim is in talks with China on forming an Asian Monetary Fund. "There is no reason for Malaysia to continue depending on the dollar," he told Parliament on Tuesday. pic.twitter.com/nyF1wmGPgX
In late March, China and Brazil agreed to transact solely in their own currencies, cutting out the greenback completely.
An Asian Monetary Fund was originally mulled and mooted in the 1990s, but Ibrahim thinks that now is the time, stating:
Also in late March, a Russian state official spoke of a new currency for the BRICS alliance, as reported by Cointelegraph. It would be another effort to distance itself from the dollar, incorporating 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
Read more on cointelegraph.com
