Malaysia is enlisting the help of China to help end the adoption of the US dollar in trade
China and Malaysia are moving ahead with discussions on the Asian Monetary Fund, after moving away from the dominance of the US dollar has become a bigger priority in the region.
Also read: OKCoin Suspends Deposits in US Dollars Following the Closure of Signature Bank
Where the Malaysian Prime Minister said Anwar Ibrahim Anwar Ibrahim On April 4, China announced that it is open to the proposal to establish an Asian monetary fund.
On the other hand, the concept of a fund focused on Asia was presented at a forum in the Chinese island province of Hainan last week, according to the website Bloomberg.
According to the Malaysian Prime Minister, the Chinese President welcomed Xi Jinping In discussions of finding an agency, to help the two countries and others in the region, move away from the US dollar and the International Monetary Fund.
It is worth noting that Malaysia is among the many Asian countries that are trying to separate themselves from dependence on the dollar, and its central bank works with the People’s Bank of China to conduct trade in their own currencies.
And China and Brazil agreed in late March to deal only in their national currencies, which led to the exclusion of the US currency altogether.
For his part, Ibrahim believes that this is the right time to establish the Asian Monetary Fund, although his idea has been on the table since the beginning of the nineties, as he said:
“I think we should discuss this topic now, given the strength of the economies in China, Japan and others, in order to consider the Asian Monetary Fund and use our own currencies.”
In a related context, a Russian government official spoke in late March of a new currency for the BRICS alliance, which would be another attempt to distance itself from the dollar, by integrating the booming economies of Brazil, Russia, India, China and South Africa.
In turn, he saw the writer in the newspaper South China Morning Post, Alex Lo On the 4th of April, there are additional reasons to stay away from the dollar.
where he said Lo More countries want to move away from the US dollar, not only for economic reasons, but to escape the clutches of US foreign policy gangs, which in the past two decades have increasingly weaponized their global hegemony with the dollar.
The end of the dollar as the world’s reserve currency could severely affect its value compared to other currencies and crypto assets.
Also read: The government of South Sudan bans transactions in the US dollar
It could also have an indirect impact on the $133 billion stablecoin market, which is dominated by dollar-pegged stablecoins.