ASEAN nations have played quite an active role in voicing their views about the US dollar. The majority of the nation’s citizens have started to ditch the USD for trade, streamlining the local currency agenda. In this wake, Indonesia has adopted a new approach by preparing a de-dollarization task force to promote the usage of local currencies and limit the usage of the US dollar in its trade procedures.
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In its quest to promote its local currency, the rupiah, Indonesia had prepared a special de-dollarization task force. This new force comprised credible government entities and organizations that would push the usage of the rupiah on a global level and, at the same time, limit the usage of the dollar to promote its local currency.
The Bank of Indonesia, alongside Indonesia’s Financial Services Authority, the Deposit Insurance Corporation, and several ministries, is also part of this narrative to boost Rupiah’s global prestige. The move has been prepared in alignment with the ASEAN long-term vision of promoting a multipolar concept to boost local currencies.
The Indonesian PM, Joko Widido, had also been noted for voicing his opinions on the US dollar’s falling reputation. He shared how the weaponization of the dollar has been the primary reason that sowed the seeds of discord, triggering the USD fall.
“We must remember the sanctions imposed by the U.S. on Russia.”
ASEAN: Bank of Indonesia Connects With RBI To Ditch US Dollar
In its quest to amp up the usage of Rupiah globally, the nation has struck a partnership with the RBI. The aforementioned collaboration is set to promote the idea of trading in local currency trade.
The memorandum that promotes the usage of local currencies between Indonesia and India was signed in March. The move is an active effort by the nations to reduce their reliance on the US dollar.
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“Furthermore, the use of local currencies will reduce transaction costs. And enhance the efficiency of transaction settlements. Stated Erwin Haryono, Head of BI’s Communication Department, in an official statement on Thursday.
