Islamabad, April 08, 2023 (PPI-OT): The Pakistan Economy Watch (PEW) on Friday said the IMF has always ruined poor countries through its impossible conditionalities. Developing countries should make vigorous efforts to create an Asian Monetary Fund as an alternative to get out of the clutches of the IMF, it said. African countries should also try to create their own monetary fund to tackle problems, said Saifuddin Sheikh, executive director of PEW.
In a statement issued here today, he said that Japan proposed the Asian Monetary Fund during the 1997 crisis, but it could not be implemented due to the opposition of the United States and China’s reluctance, but now the situation has changed. He said that the Chinese economy has become much more stable than in 1997 so it can catch up with the US. Like the IMF, the US dollar has always been used as a weapon therefore many countries are reducing their dependence on the dollar, he added.
Saifuddin Sheikh said that many countries are conducting international trade in their own currencies, while many are leaning towards the Chinese currency. Recently, Brazil and Malaysia have decided to trade in Yuan instead of dollars, which is a big step towards ending the monopoly of the dollar, he informed.
Earlier, Saudi Arabia had decided to sell oil to China in Yuan, which was a big blow to the dollar. He added that after the global sanctions on Russia, it started preferring the Chinese currency and now Russia trades mostly in it. At the moment, sixty percent of the assets of the Russian Wealth Fund consist of Chinese Yuan.
Indonesia, Vietnam, and Cambodia are also getting rid of the dollar. Meanwhile, BRICS countries are deciding to create their own currency, while Saudi Arabia is joining the Shanghai Cooperation Organization, which has worried the United States. Currently, 61 Countries including Pakistan are suffering from financial difficulties, from which many may go bankrupt if their debts of at least five hundred and twenty billion dollars are not waived, he warned.
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