Malaysia proposes establishment of Asian Monetary Fund

Malaysian Prime Minister Anwar Ibrahim delivers a speech at the opening ceremony of the Boao Forum for Asia Annual Conference 2023, in Boao, Hainan province, China, on March 3. (Photo: China Daily)

Kuala Lumpur (VNA) - Malaysian Prime Minister Anwar Ibrahim has said that China is ready to hold negotiations with Malaysia on the establishment of Asian Monetary Fund (AMF) to reduce the dependence on the US dollar.

Chinese President Xi Jinping welcomed the initiative at a meeting with the Malaysian PM during the latter's official visit to China last week, Anwar told the Malaysian parliament on April 4.

He emphasised that there is no reason for a country like Malaysia to continue relying on the US dollar.

Currently, the Central Bank of Malaysia is working on enabling the two nations to negotiate on trade matters using the ringgit and renminbi.

Anwar said he had proposed it during his term as Deputy Finance Minister in the 1990s, but at that time, the idea failed to gain attention in Asia because the US dollar was considered very strong.

But now, with the economic strength of China, Japan, and others, it should be discussed. 

Anwar also floated the idea of setting up the AMF at the Boao Forum in Hainan, China, last week, highlighting the need to reduce the dependence on the US dollar or the International Monetary Fund (IMF)./.