Malaysia's Prime Minister Champions Shift Away from US Dollar Dependence in International Trade
Asian Monetary Fund Proposed as Region Seeks to Reduce Reliance on US Currency
Malaysia's Prime Minister Anwar Ibrahim has expressed that the nation no longer needs to rely on the US dollar for attracting investments and conducting international trade. This comes as Malaysia and other Asian countries are seeking to reduce their dependence on the US currency, particularly in the context of the United States' fragile economy.
Anwar Ibrahim has suggested that Malaysia should negotiate using national currencies with other countries, and he disclosed that Bank Negara Malaysia is in the process of developing a proposal to facilitate such trade with China. This move aligns with the recent trend of countries like China and Brazil conducting transactions in their own currencies instead of the US dollar.
The Malaysian Prime Minister also highlighted the potential for creating an Asian Monetary Fund to further the region's economic independence. This idea was initially considered in the 1990s but has gained new momentum due to the growing economic strength of China, Japan, and other Asian countries.
In an effort to further distance themselves from the US dollar, several Asian nations, including Malaysia, are collaborating with the People's Bank of China to conduct trade using their respective national currencies. This reduction in dollar dependence may also stem from a desire to avoid the influence of US foreign policy, which has increasingly weaponized its global dollar dominance over the past two decades.
As more countries consider alternatives to the US dollar, it could have a significant impact on the value of the dollar relative to other currencies and cryptocurrencies, potentially affecting the $133 billion stablecoin market.
