Veteran Malaysian Prime Minister Mahathir Mohamad has made a speech calling for all of east Asia to begin trading on the basis of a new currency based on a classical gold standard. While Mahathir did not suggest that this currency should be used to settle daily transactions between individuals, he proposed that a gold backed pan-Asian currency should replace the US dollar as the standard currency used in bilateral trade among Asian countries....
Mahathir’s statement comes at a time when the dollar continues to show strength vis-a-vis is levels during the economically stressed Bush and Obama eras. That being said, not only are the strong dollar and de facto quantitative tightening policies of the US Federal Reserve putting pressure on developing countries but more importantly, Washington’s fervour when it comes to sanctions and non-tariff trade barriers is making the dollar based financial system increasingly unattractive to countries that are not in America’s immediate circle of allies....Good article. It's really a reaction to the USD and dollar hegemony.
Eurasia Future
1 comment:
Very stupid idea.
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