Malaysia and China will discuss the establishment of the Asian Monetary Fund to reduce dependency on the US dollar.
Wanting to avoid the inflationary system of the US dollar and the pressure it puts on global markets, China focused on the establishment of the Asian Monetary Fund with Malaysia.
Malaysian Prime Minister Anwar Ibrahim stated that China is open to talks with Malaysia about the Asian Monetary Fund. Anwar gave the message that action will be taken to establish the fund created against the dollar dependency.
Malaysia and China Take the Stage with Asian Monetary Fund
“When I meet with President Xi Jinping, I immediately refer to the Asian Monetary Fund proposal,” Malaysian Prime Minister Anwar Ibrahim said in parliament. said. Anwar underlined that these talks were welcomed by China.
Last week, Anwar suggested that the Asian Monetary Fund should be established to reduce dependency on the US dollar or the International Monetary Fund. According to Anwar, this proposal will be discussed with China.
The strong momentum of the dollar can cause problems for Asian countries, including food importer Malaysia. The Bloomberg dollar index reached a record high in September 2022 as the rise in the dollar pushed the ringgit and other Southeast Asian currencies to the lowest levels in the last decade.
Anwar stated that he made moves to establish the Asian Monetary Fund in the 1990s. However, according to Anwar, this proposal was not adopted in 1990. Returning to the present, Anwar believes that this fund can be implemented with the impact of strong economies such as China and Japan.
In addition, China stands out with its central bank digital currency (CBDC) studies. At the pace of blockchain adoption in the Asian region, China’s CBDC tests are also progressing successfully.
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