Asia’s push for monetary alternatives

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2022-12

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Honolulu, HI : East-West Center

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Abstract

For the last quarter century, Asia has been seeking greater autonomy within the existing international monetary system. While the region has had the resources to go its own way, intraregional rivalries and a reluctance to damage ties to the US and the International Monetary Fund have put a damper on regional initiatives. Now the ascendency of China offers a path toward greater regional autonomy in monetary affairs. Asia, led by China, has been playing a two-track strategy pushing for greater influence within the existing global institutions, while developing its own parallel institutions such as the Chiang Mai Initiative Multilateralization, the Belt and Road Initiative, and the Asian Infrastructure Investment Bank. Use of the Chinese renminbi will likely grow as a trade invoicing currency but expanded use of the renminbi as a reserve currency is more uncertain. It is possible that the dollar-centered international financial system could evolve into a multipolar system with multiple currencies playing key roles.

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For more about the East-West Center, see http://www.eastwestcenter.org/

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International finance, Asia - Foreign economic relations - China, China - Foreign economic relations - Asia, Multipolarity (International relations)

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8 p.

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Report

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China
South Asia
Southeast Asia

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AsiaPacific Issues ; no. 156

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Table of Contents

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