KL, Laos to use own monies

KL, Laos to use own monies

KUALA LUMPUR (AP): Malaysia and Laos agreed yesterday to trade
in their own currencies to reduce dependence on the U.S. dollar.

"Malaysia informed Laos of the use of regional currencies as a
new mechanism in trade, and it agreed to this," Foreign Minister
Abdullah Ahmad Badawi told reporters while briefing them on talks
between Malaysia's Prime Minister Mahathir Mohamad and the
visiting Laotian premier, Sisavath Keobounphanh.

Representatives from two countries signed trade and tourism
agreements, the government news agency Bernama reported.

Malaysia has been pushing fellow members in the Association of
Southeast Asian Nations (ASEAN) to promote use of regional
currencies among trade partners. Many ASEAN countries, hard-hit
by the regional economic downturn, have faced steep currency
depreciations of between 40 percent and 80 percent against the
dollar over the past year.

Thailand and the Philippines have already signed agreements to
implement the plan, and the Malaysian central bank has been
directed to open a regional currency clearing house.