CME Urges ASEAN To Devise A Currency That Tackles US Dollar, Euro

Juhi Mirza
ASEAN flags
Image Source: Pixabay

The rising calls for US dollar derailment are being intensified, as the Center of Market Education, or CME, has now joined the global pact for debasing US dollar supremacy.

The organization is now actively urging ASEAN to devise a unified currency system to bolster its regional currency narrative and, at the same time, boost its inter-trade prospects by ending its reliance on the USD and Euro.

Also Read: ASEAN Countries Gain $16 Billion in Profits in India’s Stock Market

CME Urges the 10-Nation Bloc to Develop Its Own Currency System.

ASEAN country flags
Source: Beawiharta Beawiharta / Reuters /

The Center for Market Education, or CME, has shared in a new statement that it wants ASEAN to work on a new unified currency system. Per the statement, the CME wants the ASEAN regional banks to work on devising a new monetary system that promotes regional currency supremacy on a global scale.

The statement further entailed CME’s growing stance on adapting a new currency model for ASEAN, based on a new commodity standard. CME further shared that such a currency should adopt a unit of account based on a basket of many goods.

“Given the fact that the ringgit is not the only Asian currency under stress (the Indonesian Rupiah (IDR) broke the psychological barrier of IDR 16,000 against the US dollar for the first time in four years), the CME invites ASEAN central banks to a higher degree of cooperation in supporting the purchasing power of their citizens,” the statement read.

Outlining how a model ASEAN currency should be, CME later stressed the currency’s robustness, adding how it should be able to take on the US dollar and Euro, giving stiff competition to their global dominion.

“Furthermore, such a currency should aim at competing with the USD and the Euro as a reputable reserve of value.”

Emphasizing the adoption of an ASEAN unit of account based on the diversity of goods, CME later shared how the new currency bank notes may be used as reserves for a robust banking system.

What’s Triggering The Sudden Deviation of The World From The USD?

It’s not just ASEAN; with the BRICS narrative gaining strength, a majority of nations are now opting for new currency alternatives rather than actively engaging with the US dollar.

Also Read: ASEAN Could Use Local Currencies For Trade, Ditch The US Dollar

The primary reason for this change has been spurred by the rising US federal interest rate scenario. At the same time, the US rate cut difference between Malaysia and the US is the primary cause of contention, sparking ASEAN to opt for a new currency method.

The prolonged high rate cuts seem to be favoring capital outflows to the US, which is compelling CME to urge ASEAN to explore a definite solution favoring their end of the trade.

“CME also strongly agrees with the primacy of structural reforms rather than monetary policy when acting domestically to support the currency by encouraging the awakening of entrepreneurial spirits.”