Asian Officials Gather in Tehran to Discuss De-Dollarization For Shifting Financial Landscapes
In a lively and highly anticipated annual meeting, top officials from nine Asian countries convened in Tehran to tackle the hot topic of de-dollarization. The gathering, hosted by the central bank of Iran, drew representatives from Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka, as well as observers from Russia, Belarus, and Afghanistan.
During the two-day event, the Asian Clearing Union (ACU) members dove into discussions on reducing reliance on the U.S. dollar. Iranian First Vice President Mohammad Mokhber highlighted that de-dollarization is no longer a voluntary choice but a necessary response to what he called the “weaponization project of the dollar.” The increasing weaponization of the dollar has compelled nations to seek alternatives and protect themselves from potential future sanctions.
Mokhber emphasized the global challenge posed by a weakening dollar, noting that it significantly impacts the United States’ influence. He expressed Iran’s readiness to bolster banking and trade relations with fellow ACU members and other nations.
Iran has been taking steps to ramp up its de-dollarization efforts, including phasing out the USD in bilateral trade with Russia. President Ebrahim Raisi recently urged the central bank of Iran to prioritize national currencies over the U.S. dollar in trade agreements. Iran is also exploring joining the BRICS economic bloc, aiming to counter Western dominance and promote a multipolar world.
The BRICS countries, along with ten Southeast Asian nations in the Association of Southeast Asian Nations (ASEAN), have been actively reducing their dependence on the U.S. dollar. The possibility of a common currency among BRICS members is on the agenda for their upcoming summit, while ASEAN countries have agreed to encourage the use of their own national currencies in trade, bypassing the dollar’s dominance.
The discussions in Tehran reflect a global shift toward de-dollarization, making way for a more diverse and multipolar financial landscape. It’s an exciting time as nations navigate new paths and seek greater independence from the dollar’s sway.
Clever Robot News Desk 25th May 2023