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.