During the Asian financial crisis, Asian leaders had difficulties in dealing with both regional and international institutions such as the Association of Southeast Asian Nations (ASEAN) and particularly the International Monetary Fund (IMF). Countries such as Indonesia, Republic of Korea, and Thailand had to turn to bailouts from the IMF. However, the strict conditions of the IMF bailouts evoked discontent among Asian countries. This discontent was largely because Asian nations had little leverage on IMF crisis resolution measures despite the IMF being an international organisation. Another source of discontent was due to the financial volatility concerning the US dollar. More specifically, difficulties had arisen because for most of the 1990s, countries such as Thailand and Indonesia had largely implemented fixed exchange-rate systems with their currencies generally pegged to the US dollar. The proposal to establish an AMF led led to sharp disagreement between Japanese and United States officials because the US Treasury, which had not been consulted on the proposal, did not support the idea of creating an AMF. In the face of this opposition from the US and a reluctance to support it from China, the Asian Monetary Fund was never established.
Is there a reason why the U.S. did not support the idea of an Asian Monetary Fund? I am wondering if the implementation of an Asian Monetary Fund could have hurt U.S. interest, because I think Asian countries could have immensely benefited from it. Therefore, I am led to believe there were some major political reasons why the U.S. did not support it.