Use of regional money in trade wins support<\/p>\n
MANILA (AFP): The Philippine central bank chief said Monday
\nthat he supported plans to use local currencies to pay for
\nregional trade to save on dollars and prevent currency
\nspeculation amid Asia's financial crisis.<\/p>\n
The plan will \"reduce the demand for U.S. dollars for trade as
\nwell as speculative purposes,\" said Gabriel Singson, adding that
\nit would give a boost to trade within the Association of
\nSoutheast Asian Nations (ASEAN).<\/p>\n
The central bank chief explained in a statement that the \"plan
\ninvolves payment of exports in the currency of the exporting
\ncountry trading within the region.\"<\/p>\n
He stressed, however, that trade \"will still be calculated and
\nquoted in terms of the daily prevailing exchange rate of that
\ncurrency with respect to the U.S. dollar.\"<\/p>\n
According to central bank figures, Philippine annual exports
\nto ASEAN countries amounted to at least $2.8 billion while
\nimports totaled some $3.79 billion.<\/p>\n
Singson said that this country \"stands to gain from the
\nproposal ... as its demand for U.S. dollars will be pushed back
\nto the settlement date.\"<\/p>\n
The central bank head said that the proposal could be
\ndiscussed further at a meeting of Southeast Asian central bank
\ngovernors in Indonesia later this week.<\/p>\n
The proposal figured in discussions between Philippine
\nPresident Fidel Ramos and visiting Malaysian Prime Minister
\nMahathir Mohamad last Friday where the two heads of states agreed
\nto hasten such a plan, according to a presidential statement.<\/p>\n
Foreign secretary Domingo Siazon said Monday that an initial
\ncurrency swap scheme was ready to take off between the
\nPhilippines, Malaysia and Thailand as soon as the Thai government
\ngives its go ahead.<\/p>\n
Officials have said that initial plans were to link these
\nthree countries but talks continue with other ASEAN members.
\nIndonesia, however, has reportedly opted out of the scheme owing
\nto the rupiah's present volatility.<\/p>\n
ASEAN groups Brunei, Indonesia, Laos, Malaysia, Myanmar, the
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/use-of-regional-money-in-trade-wins-support-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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