The financial authorities of Asia, primarily the BRICS countries, are doing their best to knock the US dollar off its throne. However, their efforts have not been successful so far.
The dollar's strength is causing concern among monetary officials in Asia. The BRICS nations are anxiously watching the performance of the greenback, which periodically hits new record highs.
Experts attribute a steady rally in the dollar to consistent interest rate hikes by the Federal Reserve in 2023. Such measures cause currency imbalances in the financial markets of China and Japan. In addition, the US currency is also supported by rising crude prices.
The government of China, a member of the BRICS alliance, has introduced a new rule that obliges the country’s financial organizations to keep no more than a third of their deposits in foreign currency. Besides, China intends to restrict the use of the greenback in order to stabilize the dollar-yuan exchange rate.
Japanese authorities are also seeking ways to limit a bullish run in the US currency against the national one. According to Japan's top financial diplomat Masato Kanda, the government is planning to conduct foreign exchange interventions to back the yen up.