Now the discussion has started on the proposal to create "Asia Monetary Fund"

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Now the discussion has started on the proposal to create

According to experts, creating an alternative to the IMF is a difficult challenge. Michael Ignatius Ho, Hong Kong-based Asia director of Israel's venture capital platform OurCrowd, said that central banks around the world are adding different currencies to their foreign exchange reserves

Malaysian Prime Minister Anwar Ibrahim's proposal to create an Asia Monetary Fund (AMF) on the lines of the International Monetary Fund (IMF) has been considered a far-reaching initiative. It is understood that if this institution comes into existence, then the dependence of various countries on the US currency dollar will decrease. Ibrahim had proposed the formation of the AMF to Chinese President Xi Jinping during his visit to China late last month. Since then many countries have given their response on this. Indonesia's Minister of Economic Affairs Erlangga Hartato told the newspaper Jakarta Post – It is a good idea. But it can be given a practical form only if various countries show commitment regarding it.

According to experts, creating an alternative to the IMF is a difficult challenge. Michael Ignatius Ho, Hong Kong-based Asia director of Israel's venture capital platform OurCrowd, said central banks around the world are adding different currencies to their foreign exchange reserves. But as far as balancing the new monetary policy is concerned, it is not an easy task. Very few countries would be prepared to bear the cost of this.

Ibrahim made his proposal at a time when many countries are abandoning the dollar in international trade and adopting the Chinese currency Yuan. The formation of AMF is thought to be related to this phenomenon. But according to Edwin Lai, professor of economics at the Hong Kong University of Science and Technology, it will take a long time for the yuan to replace the dollar. This may take ten to 20 years. He Weiwen, senior fellow at the Beijing-based Center for China and Globalization, pointed out that yuan currently accounts for only 1.9 percent of all international trade payments. While 40 per cent payments are being made in dollars. In the foreign exchange reserves of different countries, the share of yuan is only three percent, while 58 percent of the dollar. Therefore, the possibility of an immediate realization of the new international monetary order is slim.

He Weiwen said - 'The youth has a long way to go. But the formation of the proposed AMF could help in increasing Yuvan's international penetration. The cooperation of the new institution can be sustained with the Arab Monetary Fund. The Arab Monetary Fund has also been created on the same lines.

According to an analysis published in the newspaper South China Morning Post, the formation of AMF will increase the bargaining power of Asian countries. There is a common complaint that Asian countries are not represented in the IMF commensurate with the size of their economies. There, all Asian countries including China and Japan have only 21.8 percent votes, while America alone has 16.5 percent vote power. As Asia's demand for reform of the IMF's structure has not progressed, countries such as Malaysia have revived proposals to create Asia's own monetary fund. Significantly, such a proposal came to the fore in 1997 at the time of the Asian financial crisis.

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