According to the latest statement by Malaysian Prime Minister Anwar Ibrahim, China is open to discussing the formation of an Asian Monetary Fund with Malaysia. The vision of the Asian Monetary Fund is to reduce dependency on the US dollar.
The financial economy of the United States has experienced a period of upheaval with the reduction of the use of the US dollar for transaction settlements. Ibrahim had earlier stated that there is no reason to continue to depend on the US dollar. He also added that one of the primary reasons for depending on the US currency was to attract investments in this country.
Malaysia to steer away from US dollar dependency
Anwar told the Malaysian parliament on Tuesday: “When I had a meeting with President Xi Jinping, he immediately said, ‘I refer to Anwar’s proposal on the Asian Monetary Fund,” and he welcomed discussions.”
Malaysia’s Prime Minister also stressed his earlier proposal to form an ancient Monetary Fund during his first term in the 1990s. He also mentioned that the idea didn’t gain enough popularity due to the strength of the US dollar.
Anwar stated that, “But now with the strength of the economies in China, Japan, and others, I think we should discuss this — at least consider an Asian Monetary Fund, and, secondly, the use of our respective currencies.”
Anwar also mentioned that the Malaysian central bank is already working on enabling China and Malaysia to negotiate and enable trade using the ringgit and renminbi. The deteriorating dependency on the US dollar by global nations has definitely been a worrisome factor.