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Reduce Dollar Dependence: Bypass US sanctions and trade restrictions. Promote Economic Cooperation: Facilitate trade among BRICS nations. Assert Economic WASHINGTON, Jan 31President Donald Trump yesterday warned off BRICS member countries from replacing the US dollar as a reserve currency by repeating a 100%-tariffs threat Malaysian Prime Minister Anwar Ibrahim confirmed on Tuesday that the country is advancing to eliminate the dependency on the US dollar for the global trade. Investment, trade and industry minister Tengku Zafrul Aziz today played down the likelihood of BRICS halting the use of the US dollar in international trade. Tengku Zafrul Malaysia is following in the footsteps of BRICS in a mission to uproot the hegemony of the US dollar. The Prime Minister of Malaysia Anwar Ibrahim confirmed on

Malaysia Announces Push to Eliminate US Dollar in Global Trade: Following BRICS Lead

Is Malaysia joining BRICS in a move to challenge the dominance of the US dollar? Recent announcements by Malaysian Prime Minister Anwar Ibrahim signal a firm intention to eliminate the dependency on the US dollar for global trade. This echoes sentiments expressed by BRICS nations and has sparked considerable discussion about the future of international finance.

Why is Malaysia Considering Ditching the Dollar?

The motivation behind Malaysia's decision appears multifaceted, aligning with the core goals of BRICS economic strategy:

  • Reduce Dollar Dependence: Bypass US sanctions and trade restrictions. Countries are increasingly seeking alternative currencies to avoid being subject to US economic policies.
  • Promote Economic Cooperation: Facilitate trade among BRICS nations and other countries without relying on the US dollar, fostering stronger economic ties.
  • Assert Economic independence and protect national interests from external pressures. This allows Malaysia to control its own trade policies and reduce vulnerability.

While Investment, trade and industry minister Tengku Zafrul Aziz today played down the likelihood of BRICS halting the use of the US dollar in international trade immediately, the long-term trajectory suggests a gradual shift towards alternative currencies. Tengku Zafrul emphasized Malaysia's commitment to exploring various options for international trade settlements.

Following in the Footsteps of BRICS?

Malaysia is following in the footsteps of BRICS in a mission to uproot the hegemony of the US dollar. The Prime Minister of Malaysia Anwar Ibrahim confirmed on Tuesday that discussions are underway to explore alternative payment mechanisms and trading currencies with key partners.

This move comes amidst increasing concerns about the US dollar's strength and the potential impact of US monetary policy on global economies. The potential for BRICS member countries from replacing the US dollar as a reserve currency, a prospect that previously drew warnings, is becoming a tangible topic of conversation and action.

Impact on Global Trade

If Malaysia and other nations successfully reduce their reliance on the US dollar, it could lead to a more multipolar global financial system. This could potentially lead to:

  • Increased use of national currencies in trade.
  • Development of alternative payment systems.
  • Greater economic independence for participating countries.

The situation remains dynamic, and the long-term consequences are yet to be seen. However, Malaysia's announcement signifies a significant step towards challenging the dollar's dominance and fostering greater economic diversity in the global arena.

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