As for the US dollar's continuous financial restrictions on some markets, the oil Iran's economy is constantly breaking through in the layout of dollarization. The latest progress of the matter, according to the The Associated Press local time on December 19th, Iran hopes to create digital currency as one of the means to counter the US dollar and de dollarization.
Iran also calls on relevant countries to strengthen financial and trade cooperation and reduce dependence on the US dollar. Think, "we can use our own currency or use the general currency. "Iran proposes to trade with local currencies, and some countries establish special banking and financial systems. It is also proposed to create an encrypted currency as part of this work. According to reports, Iran's idea of de dollarization has been supported by Malaysia.
If we say that the US dollar economy of the oil country of Iran is due to the special existence of the oil dollar, which keeps the trading of some oil companies in the world limited. This directly promotes the de dollarization of Iran. Then, Malaysia or "sneak attack" on the US dollar is another explanation that the US dollar status will not last forever. This is precisely the more than 20 Asian financial crisis before, which has left Malaysia and other Southeast Asian countries with a lingering fear. At the same time, this is also one of the reasons why Southeast Asian countries are more dollarization and sneak attacks on the US dollar.
For example, the Central Bank of Malaysia put forward a proposal to implement Pan Asian gold backed currencies between Southeast Asian countries a few weeks ago, because gold is more stable than the US dollar. Moreover, as early as two years ago, Malaysia launched a direct settlement plan for local currency transactions with the Central Bank of Indonesia and Thailand to reduce the dependence of the three financial systems on the US dollar. Agus, former president of Indonesia's central bank, said that "at present, 94% of Indonesia's export business and 78% of its import business use US dollars to settle accounts, and the above plan helps to diversify the international financial business of the three countries".
In recent years, the three Southeast Asian countries have continuously increased their use probability in the process of economic and trade cooperation with the Chinese market. Last year, the Central Bank of Thailand renewed the currency swap agreement with the Central Bank of China, maintaining a scale of 70 billion yuan. The National Bank of Malaysia also signed a currency swap agreement with the Central Bank of China, maintaining a scale of 180 billion yuan /1100 billion Malaysia ringgit. The Bank of Indonesia also renewed bilateral currency swap agreements with the Central Bank of China. The scale of the agreement is 200 billion yuan /440 trillion Indonesian rupee.
Some analysts believe that many countries in Southeast Asia are hedging the risk of US dollar spread by increasing the use of Renminbi. And it also conveys that, with the constant escalation of consumption in the Chinese market, it is inevitable that many countries including Southeast Asian countries will increase their use of Renminbi.
For example, Thailand and Malaysia produce large amounts of rubber every year, while China is the largest rubber importer. If the US dollar is used for valuation and settlement, there will be a risk of interest spread, and the actual profits between the businesses will be reduced. Once the dollar has dried up, the rubber like business can no longer go on. Obviously, with the increase of economic and trade, the probability of breaking the US dollar monopoly market will be further improved.
In fact, the close proximity of Southeast Asian countries to the yuan is only a microcosm of the increasing influence of the renminbi. Let's take the oil Iran as an example. Several months ago, before the upgrade of the dollar limit in Iran, we formally announced that the Renminbi should be listed as the main foreign exchange currency to replace the US dollar status. (end)