The Center for Market Education has once again echoed calls for bringing in a unified currency system, challenging the esteemed US dollar’s global positioning. Amid the dynamic shift that the financial realm has been undergoing lately, the multipolar currency narrative is consistently taking shape, with regional currencies scaling on top of the world’s radar. How will this development fare for the US dollar (USD) amongst ASEAN Countries? Let’s find out.
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ASEAN Nations Are Called To Work On A Unified Currency System
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The rising US dollar debt metrics, and the weaponization of the USD, have sowed the seeds of doubts among several global nations. In the midst of it, the BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has already started working on a different currency system to compete with the USD. Joining the latest queue is the ten-bloc ASEAN network. ASEAN countries are now being compelled to work on a lucrative currency system that challenges the US Dollar’s supremacy on a global scale.
In a new statement released by the CME, the organization has called for ASEAN to curate a new currency system, “based on a new commodity standard,” that can compete with Euro and USD directly. Speaking about how it would bolster the purchasing power of the citizens, the CME urged the central banks of the ASEAN nations to work on a unified currency system.
“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 for supporting the purchasing power of their citizens,”
A Currency That Competes With Euro And Dollar
The CME statement holistically echoes a singular sentiment. It lays stress on how a unified currency system would help nations foster cooperation and support.
“Furthermore, such a currency should aim at competing with the USD and the Euro as a reputable reserve of value. 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,” it said
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The US dollar’s positioning as a global reserve currency now stands at a lethal threshold. The development has reached a precarious mark. The development has been spurred primarily due to the US’s ability to weaponize its dollar while issuing sanctions on nations.
With the petrodollar agreement lapse, the currency is now inching towards its derailment. This may get expedited if alliances like BRICS and ASEAN gain further strength in terms of policy and monetary restructuring.