Topmost officials from nine Asian countries, elements of the Asian Clearing Union (ACU), have gathered in Tehran for their annual convocation, where de-dollarization takes center stage. In addition to the officials from Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka, Russia’s central bank governor and officials from Belarus and Afghanistan similarly attended the meeting.
‘De-Dollarization Is Not a Voluntary Choice by Countries’
The two-day 51st annual Asian Clearing Union (ACU) meeting embarked on Tuesday in Tehran, with participation from officials representing members of the Asian Clearing Union (ACU) as well as several others. The meeting was hosted by the central bank of Iran andde-dollarization was a crucial topic discussed at the event, Tasnim news service reported.
The ACU presently has nine members Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of Iran, Maldives Monetary Authority, Central Bank of Myanmar, Nepal Rastra Bank, State Bank of Pakistan, and Central Bank of Sri Lanka. Apart from the topmost officials of the ACU members, the governor of the Russian central bank is attending as an observer along with officials from Belarus and Afghanistan.
Opening on the part of the U.S. dollar in the world economy and a raising number of countries moving down from utilizing the USD in trade settlement, Iran’s First Vice President Mohammad Mokhber told at the meeting:
De-dollarization is not a voluntary choice by countries anymore, it is the countries’ inevitable response to the ‘weaponization project of the dollar.’
Mokhber remarked that over the past decades, the “ Weaponization of the dollar ” has compelled countries to distance themselves from dependence on the USD in order to mitigate the potential impact of possible future sanctions.
Addressing the growing trend of countries seeking to diminish their dependence on the U.S. dollar, the Iranian initial vice president aimed out that the weakening of the dollar poses a significant challenge to the United States ’ global influence. Concluding his remarks, he emphasized that the Islamic Republic is prepared to enhance its banking and trade relations with different nations, particularly ACU member states.
Iran has been ramping up its de-dollarization efforts, similar to phasing out the USD in bilateral trade agreements with Russia. before this month, Iranian President Ebrahim Raisi called on the central bank of Iran to ditch the U.S. dollar in trade and utilize national currencies rather. President Raisi similarly told Iran is seeking to join the BRICS economic bloc to counter Western hegemony and raise a multipolar world.
The BRICS countries (Brazil, Russia, India, China, and South Africa) have similarly pushed to reduce their dependence on the U.S. dollar. The economic group is discussing creating a common currency that's set to be talked over at its forthcoming leaders ’ summit. Ten Southeast Asian countries, members of the Association of Southeast Asian Nations (ASEAN), similarly recently agreed to encourage the usage of national currencies rather than the U.S. dollar.
(Kevin Helms, Bitcoin.com, 2023)