The Association of Southeast Asian Nations (ASEAN), consisting of ten Asian countries, is planning to boycott the U.S. dollar to promote local currencies for cross-border transactions.
In a bid to end its over-reliance on the dollar for global trade, the bloc, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam, plans to expand on its $4 trillion economy, but with local currency transaction.
This disclosure followed the International Monetary Fund’s (IMF) confirmation of the pressure rising from the BRICS de-dollarization agenda, as members now conduct business based on their geopolitical alliances with other countries.
In a paper titled ‘Impact of Geopolitics on International Trade and the Dollar’, the IMF stated that BRICS is shifting its global economic policies.
However, the ASEAN move to ditch the dollar is a work in progress, but if and when implemented, the pressure on the dollar will heighten while local currencies will strengthen.
Indonesian President Joko Widodo has since urged other ASEAN bloc members to boycott the dollar for local currencies’ boost.
Meanwhile, the United States maintains a relative de facto power by placing sanctions on countries looking to promote its local currency in the global financial market.
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