China Ready to Talk Asian Monetary Fund to Cut Dollar Dependence, Malaysia Says

China Ready to Talk Asian Monetary Fund to Cut Dollar Dependence, Malaysia Says

An idea to establish an Asian Monetary Fund has caught the attention of the Chinese leadership, the head of the Malaysian government revealed. The prime minister believes there is no reason for his country, which is hurting from a strong U.S. dollar, to remain dependent on the greenback. Malaysia Prepares to Trade With China in National Currencies, Limit Reliance on Dollar

China is open to talks with Malaysia on a decades old proposal to set up an Asian Monetary Fund that can reduce reliance on the U.S. currency, Malaysian Prime Minister Anwar Ibrahim announced, quoted by Bloomberg.

Anwar, who also serves as Malaysia’s minister of finance, pitched the idea at the Boao Forum last week when he emphasized on the need to cut dependence on the International Monetary Fund (IMF) as well. On Tuesday, he told Malaysian lawmakers: 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.

The head of the Malaysian government was reporting on the results of his recent state visit to the People’s Republic. He also said that Malaysia’s central bank is already working on enabling the two nations to start trading in their respective national fiats, ringgit and renminbi. Malaysian Prime Minister Anwar Ibrahim.

An expensive U.S. dollar has been weakening currencies in the region and creating headaches for nations like Malaysia, which is a net importer of food items, the report remarks. Last fall, the ringgit, among other currencies, saw multi-decade lows against the greenback.

Anwar Ibrahim reminded that he initially circulated the proposal for an Asian Monetary Fund when he first took the job of finance minister in the 1990s. At the time, the idea did not gain sufficient traction as the U.S. dollar was seen as strong, he admitted, while pointing out: 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’s statements come after the finance ministers and central bank governors of the Association of Southeast Asian Nations (ASEAN), of which Malaysia is a member, discussed decreasing their countries’ dependence on western currencies like the dollar. During a meeting in Indonesia at the end of March, they also explored ways to promote the use of local currencies in trade settlements. Tags in this story Anwar Ibrahim, Asian Monetary Fund, China, chinese, currencies, Currency, dependence, Dollar, Fiat, fiat currency, IMF, International Monetary Fund, Malaysia, Malaysian, national currencies, regional currencies, reliance, renminbi, ringgit, trade, trade settlements, U.S. dollar, US Dollar, Xi Jinping, Yuan

Do you think an Asian Monetary Fund will be formed in the near future? Share your expectations on the matter in the comments section below. Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Microstrategy"s Bitcoin Holdings Reach 140,000 BTC After Acquiring 1,045 More Bitcoins NEWS | 2 hours ago Bitcoin Stamps Emerge as New Image-Storage Trend on the Bitcoin Blockchain, Over 8,000 Stamps Minted So Far NEWS | 4 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons, Abdul Razak Latif / Shutterstock.com Previous articleOKX and Google Cloud Host Successful Hackathon for Decentralized Applications on OKT Chain Next articleBiggest Movers: XRP Rebounds on Tuesday, as AVAX Hits 1-Week High Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether