Southeast Asia is increasingly becoming a central financial hub, harbouring great power and prestige. The ASEAN regions are increasingly becoming more successful, inviting foreign influx, and at the same time, have expedited efforts to end their reliance on the US dollar.
This has been done while adhering to the multipolar currency narrative and pioneering the local currency narrative. But why is ASEAN eager to move away from the dollar? Let’s find out.
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Indonesian PM Urges Nations To End Their Dependence On USD
Indonesian PM Joko Widodo had earlier reiterated calls concerning the US dollar. In one of these meetings, Widido shared how ASEAN nations should focus on increasing their interpersonal connections and not depend on the dollar for the long haul.
Widodo explained the reasons behind his bold statement, stating that moving away from Western payment is necessary to “protect transactions from possible geopolitical repercussions.”
The US dollar is currently in bearish waters as the DXY index plummeted to its lowest level. The past week has been particularly stressful for USD, as the currency metrics toppled significantly, with the DXY index sitting at 100.71.
At the same time, rising US debt parameters are also wreaking havoc in space. The weaponization of the US dollar is also sending mixed signals globally, with nations actively portraying their reluctance.
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Widodo Urges Nations To Use Local Credit Cards, Ditch US Dollar
Indonesia’s PM, Joko Widodo, has voiced his concern about the changing USD dynamics. In one of the ASEAN bloc meetings held in March, the Indonesian PM reiterated his factual stance, adding that nations must start using local credit cards to bolster the multipolar currency agenda.
The Indonesian PM later urged regional nations to stop using foreign payment systems entirely. He later shared that using credit cards issued by local banks will safeguard nations from abrupt USD abnormalities and geopolitical disruptions.
US Dollar To Topple In The Near Future?
The speculatory bandwagon currently hints at the US dollar plummeting to new levels. This change is due to Powell’s recent stance on interest rate cuts. In one of his official addresses, Fed Chair Powell shared how interest rate cuts are being considered.
According to Bloomberg, China may sell its 1 trillion dollar assets denominated in dollars once the rate cuts are announced. The speculatory spree adds that the dollar’s allure may diminish if the federal reserves lower interest borrowing costs, eroding the USD’s value further below.
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