SE Asia told to ease dependence on dollar<\/p>\n
KUALA LUMPUR (AFP): A Southeast Asian private-sector business
\nalliance said yesterday that regional economies should reduce
\ntheir dependence on the U.S. dollar in the wake of regional
\ncurrency turmoil.<\/p>\n
\"For the longer-term, Southeast Asia should consider reducing
\ndependence on the dollar and diversifying into currencies that
\nare a more objective and less volatile store of value,\" said the
\nMalaysian-based ASEAN Business Forum in a statement here.<\/p>\n
It said Southeast Asia should consider diversifying into
\ncurrencies that are less volatile and, within the region,
\ncooperate with Japan in terms if yen asset holdings.<\/p>\n
\"In the medium term, regional economies should welcome the
\nintroduction of the euro in 1999 as a viable alternative to the
\ndollar as its inclusion in national foreign exchange reserves
\nwill reduce currency volatility,\" the private business grouping
\nmade up of leading ASEAN businessmen said.<\/p>\n
Regional currencies have fallen by from 10 percent to 60
\npercent against the dollar since the Thai baht's devaluation
\nagainst the US unit on July 2.<\/p>\n
A senior French official also urged Southeast Asian economies
\nFriday to peg their currencies to the new euro currency.<\/p>\n
\"It will mark the end of the dollar monopoly. We are not
\nagainst our US friends. We will be able to build a new stable
\neconomy,\" said Jean-Daniel Tordjman, special representative of
\nFrance for international investment.<\/p>\n
The European Union plans to launch the euro as the single
\ncurrency for most EU members on January 1, 1999.<\/p>\n
The ASEAN Business Forum said currency stabilization efforts
\nhad only a limited effect. \"Often this happens too little, too
\nlate and there is a redistribution of wealth from government to
\nprivate financial market players, \" it said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asia-told-to-ease-dependence-on-dollar-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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