The decision by Southeast Asian countries to use local currencies in intraregional trade will help reduce external risks because it will lessen dependence on international currencies such as the US dollar, experts say.
Members of the Association of Southeast Asian Nations will be creating a task force that will design the transition that will help ASEAN economies gradually shift from using international currencies to local currencies in financial transactions, the Governor of the Indonesian Central Bank, Perry Warjiyo, says.
The announcement was made at the ninth ASEAN Finance Ministers and Central Bank Governors Meeting in Bali.
Indonesian President Joko Widodo has already urged Indonesia’s regional administrations to start using credit cards issued by local banks and gradually stop using foreign payment systems. He argues that Indonesia needs to shield itself from geopolitical disruptions.
Moving away from Western payment systems is necessary to protect transactions from “possible geopolitical repercussions,” Widodo says.
Indonesia’s Finance Minister Sri Mulyani Indrawati adds that ASEAN remains a bright spot in the global economy, offering “more promising prospects compared to a bleaker global outlook.”
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