China and Brazil recently agreed to stop using the U.S. dollar in commercial deals in favor of their respective currencies.
China is willing to discuss the idea, Malaysia is resurrecting a decades-old plan to establish an Asian Monetary Fund to lessen reliance on the U.S. currency.
Anwar Ibrahim, the prime minister of Malaysia, proposed the fund last week, according to Bloomberg.
Anwar, who is also the nation’s finance minister, spoke to the Malaysian parliament on Tuesday. “When I had a meeting with President Xi Jinping, he immediately said, “I allude to Anwar’s plan on the Asian Monetary Fund,” and he welcomed discussions, ” Anwar said.
There is no justification for Malaysia to keep relying on the dollar, he continued.
During his first term as finance minister in the 1990s, Anwar claimed he put off creating an Asian Monetary Fund. The U.S. currency was still regarded as being strong at the time, which prevented the concept from taking off, he claimed.
According to a news source, the dollar index touched a record high in September 2022 as other Asian currencies fell to levels not seen in decades.
China and Brazil recently agreed to replace the U.S. currency with their respective currencies in commercial transactions.
According to the most recent statistics, the United States is Brazil’s second-largest commercial partner after China, which accounts for more than a fifth of all shipments.
More than a third of all shipments from Brazil go to China, which is also its biggest export market.