The debt crisis in the United States reduces confidence to the U.S. dollar and accelerates the process of abandoning its use in international payments. In particular, ten ASEAN countries have agreed to promote their national currencies for mutual trade and gradually abandon the dollar, reports WION.
The United States, as the world’s superpower, is facing yet another setback. Countries around the world are abandoning America’s dominance of world trade.
With the fiscal debt ceiling crisis, the United States is also facing the challenge of abandoning the dollar from the Association of Southeast Asian Nations. Ten ASEAN countries are on the verge of beginning the process of “de-dollarization.
ASEAN members have agreed to promote their own national currencies for cross-border transactions. The ten countries intend to reduce settlement payments made in U.S. dollars.
The list of countries that have decided to abandon payments in U.S. dollars includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
The purpose of “dedollarization” is to strengthen mutual settlements in bilateral and multilateral payments. In addition to the BRICS countries, the ASEAN states will now also move away from the use of the U.S. dollar.
The ASEAN countries are also quite wary of the role the U.S. dollar plays in the implementation of sanctions imposed by the United States.