Malaysia and China seek to create an Asian Monetary Fund to counter the dominance of the dollar

Malaysian Prime Minister Anwar Ibrahim has proposed the creation of an “Asian Monetary Fund” as an alternative to the dominance of the US dollar and the International Monetary Fund (IMF) on the world financial stage. During a meeting with Chinese President Xi Jinping in Beijing, Anwar defended the idea of using the national currencies of Asian countries in their trade and financial negotiations, instead of the dollar. China has welcomed the initiative and has shown interest in starting talks on it.

Anwar argued that there is no reason for Malaysia to remain dependent on the dollar, saying that the Malaysian central bank is already working to allow China and his country to trade in their respective national currencies. This is not the first time that Anwar has proposed the idea of creating a regional fund, as he first suggested it in 1990 when he held the Finance portfolio, but the idea did not materialize back then due to the strong presence of the dollar.

The annual report of the Boao Forum 2023, a major international economic conference hosted by China, indicates that Asia’s real GDP growth is expected to be 4.5% this year, making it a “prominent player” in amid the global slowdown.

Meanwhile, China is working to strengthen the yuan’s presence in world trade, having recently signed agreements in this regard with several countries, including Brazil, Chile, Argentina, Saudi Arabia and Russia, with the aim of increasing the yuan’s share in the world trade, which currently stands at 2%.

K. Tovar

Source: Bancaynegocios

(Reference image source: file)

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