Asean ministers to consider greater use of local currencies

[webfact]

Asean ministers to consider greater use of local currencies 

By WICHIT CHAITRONG  
THE NATION 
CHIANG RAI 

 

Deputy Finance Minister Wisudhi Srisuphan (right), chairs Asean senior officials' meeting in Chiang Rai

 

THE UPCOMING meeting of Asean finance ministers will focus on giving local currencies a bigger role and further liberalising financial services, Lavaron Sangsnit, director-general of the Finance Ministry’s Fiscal Policy Office, said Wednesday.

 

Senior Asean officials met on Tuesday and Wednesday to discuss the role of local currencies in the Chiang Mai Initiative, which is a mechanism for emergency loans in a crisis, as they prepared the agenda for the finance ministers’ meeting in Chiang Rai, Lavaron said.

 

Currently, Asean, China, Japan and South Korea have contributed funds in US dollars to the Chiang Mai Initiative, while Asean officials and their counterparts from East Asia are looking at allowing members to contribute in local currencies, he said.

 

This issue will be discussed during the Asean finance ministers’ meeting today and tomorrow, Lavaron added. 

 

The ministers will also sign an agreement to liberalise financial services, while Thailand will liberalise the asset-management business. 

 

This will allow Asean investors to hold majority stakes in asset-management firms, he said, adding that since Thailand’s asset-management business is already open, there is no need to amend any laws. Other countries will also propose to open their financial services once they are ready. 

 

The minister will also discuss the issue of making electronic payments across the border, as many countries have been developing the infrastructure needed for a cashless society. 

 

For instance, Thailand has developed the infrastructure to accommodate payments using QR codes, internet and mobile. Cooperation in this sector will make things more convenient for consumers and make financial transactions in Asean countries much easier. 

 

The region will also implement the Asean Single Window for sharing information and facilitating trade and investment, Lavaron said, adding that this is already in place in nine countries with the exception of Laos. 

 

Funding for ‘green’ businesses

 

The ministers will also work with the Asian Development Bank (ADB) to promote the green bond market, which will support investors and businesses that want to raise funds for environmentally friendly projects in the region. 

 

ADB has also urged Asean to deepen its customs cooperation in order to promote more trade and investment.

 

Representatives from the International Monetary Fund (IMF) met with Asean senior officials on Tuesday and suggested that the “Digital Revolution” will propel Asian economies, which have been driven by innovations over the past 20 years. 

 

IMF has forecast that the global economy will expand 3.5 per cent this year, a deceleration from a growth rate of 3.7 per cent last year. Risk factors are trade tensions between the US and China and a slowdown of global economy. But a delay in interest hike by the US Federal Reserve can be favourable, IMF said.

 

Source: http://www.nationmultimedia.com/detail/asean-plus/30367091

 

-- © Copyright The Nation 2019-04-04

[Prissana Pescud]

I find it amazing that these high level talks and agreements have zero impact on the population.

No one is including them in the discussion. It is just assumed that the populace will follow the ruling party decisions.

And that is Thai democracy. And Thai people, being meek and mild refrain from comment.

But around the market place, the people are stoic but angry.

I am old and I hope I am dead when the frustrations of the common man reach intolerable levels.

It will not be pretty

[Srikcir]

7 hours ago, webfact said:

looking at allowing members to contribute in local currencies

Good luck with Cambodia.

Roughly 84% of economic transactions in Cambodia are conducted in dollars, according to an estimate by the National Bank of Cambodia.

"De-dollarization has been floated since UNTAC (the United Nations Transitional Authority in Cambodia, 1992-1993)." "The dollar would have to be banned as legal tender. Good luck with that." - Sophal Ear https://asia.nikkei.com/Economy/Keeping-it-riel-Shaking-Cambodia-s-dollar-dependency