May 11, 2023
1 min read

ASEAN push to use local currency for trade

The declaration said leaders recognized the potential benefits of local currency usage in strengthening financial resilience…reports Asian Lite News

To facilitate regional economic integration, leaders of the Association of Southeast Asian Nations (ASEAN) made a declaration on advancing regional payment connectivity and promoting local currency transaction during the two-day summit of the bloc.

This year’s 42nd ASEAN Summit under Indonesia’s chairmanship is themed “ASEAN Matters: Epicentrum of Growth”, held from Tuesday to Thursday in the Indonesian town of Labuan Bajo, reports Xinhua news agency.

The declaration said leaders recognized the potential benefits of local currency usage in strengthening financial resilience, deepening regional financial integration by improving intra-ASEAN trade and investment, and bolstering regional value chains.

Leaders declared to commit to advancing regional payment connectivity by utilising emerging opportunities brought by innovation to facilitate seamless and secure cross-border payment, taking country circumstances into consideration.

They also agreed to encourage the use of local currencies for cross-border transactions in the region and support the establishment of a Task Force to explore the development of an ASEAN Local Currency Transaction Framework.

Ahead of the summit, the Indonesian Employers Association (Apindo) had expected that Indonesia could drive regional de-dollarisation through its 2023 ASEAN chairmanship.

Ajib Hamdani, head of Apindo’s Economic Policy Analyst Committee, said in an official statement that de-dollarisation has become a global phenomenon and, to some extent, an economic orientation.

At the end of March, the ASEAN finance ministers and central bank governors meeting agreed to reinforce the use of local currencies in the region and reduce reliance on major international currencies for cross-border trade and investment in an effort to ensure financial stability and avoid spillovers such as high inflation from the global crisis.

ALSO READ: 42nd ASEAN Summit begins in Indonesia

Previous Story

George Santos pleads not guilty to federal charges

Next Story

PTI anger wreaks havoc in Pakistan

Latest from -Top News

Dubai Glows with Ramadan Spirit

The stunning displays are a key highlight of the second edition of the #RamadanInDubai campaign. Dubai has transformed into a dazzling spectacle of light and artistry in celebration of Ramadan, with grand

UAE Celebrates Emirati Children’s Day

The United Arab Emirates is celebrating Emirati Children’s Day today, reaffirming its dedication to nurturing a safe and supportive environment for the nation’s children. This annual occasion highlights the UAE’s commitment to

Mark Carney Sworn In As Canada’s PM

Mark Carney was officially sworn in as Canada’s new Prime Minister on Friday, succeeding Justin Trudeau in a leadership transition that comes amid heightened geopolitical tensions. Carney, a respected economist and former

Pakistan Blames Kabul for Jaffar Express Attack

The Pakistan Foreign Office spokesperson Shafqat Ali Khan has stated that the intercepted calls confirmed links between the attackers and Afghanistan…reports Asian Lite News Pakistan continues to accuse Afghanistan of orchestrating the
Go toTop

Don't Miss

Cambodian PM Due In Indonesia For ASEAN Summit

This will be Hun Manet’s first international appearance as the

Pre-Summit Pollution Fight in Indonesia

There have been increasing cases of acute respiratory infections since