After the 1997 Asian financial crisis, Japan suggested the establishment of an Asian Monetary Fund to furnish a new order for regional financial stability. The world's financial world couldn't hide its surprise. A bold proposal for a regional alternative to the IMF came at a moment's notice. However, this extraordinary proposal temporarily brought a beam of hope to the Asian economy, but ultimately fell through with fierce opposition from the US Treasury Department and the IMF. In the end, it had no choice but to choose an IMF-centered approach.
Yet, after that, the Asian Monetary Fund discussion became the source of the Chiang Mai Initiative Multilateral Currency Swap Arrangement. Eventually, the time may have come to create an international organization called the Asia-Pacific Monetary Fund (formerly the Asian Monetary Fund). On April 4, 2023, Malaysian Prime Minister Anwar Ibrahim and Chinese President Xi Jinping met at the Malaysian parliament to discuss the idea of reviving the Asia- Pacific Monetary Fund. The Asia-Pacific Monetary Fund seems to have been mentioned owing to recent events have reminded Asian countries of their currency dependence on the United States and the shortcomings of the international financial structure around it. Anwar Ibrahim told policymakers that there is no longer any reason for Malaysia to remain dependent on the dollar.
If the Asia-Pacific Monetary Fund is to function harmoniously in the rest of Asia, the region may find it difficult right now to replace its dependence on the yuan for its simple dependence on the dollar. Thus, Asia needs a reinvented reserve architecture that is not swayed by the authority of individual countries.
