RP and Brunei to discuss use of ASEAN currencies

RP and Brunei to discuss use of ASEAN currencies

MANILA (AFP): Sultan Hassanal Bolkiah of Brunei, due to begin a two-day visit, is to discuss with President Joseph Estrada the use of ASEAN currencies and other measures aimed at easing the pain of the Asian crisis, a spokesman said Monday.

The Brunei ruler was scheduled to arrive in Manila later Monday and meet Estrada Tuesday. Their countries are both members of the Association of Southeast Asian Nations (ASEAN).

Presidential spokesman Fernando Barican said Manila is "studying ways to pursue the use by the Philippines and other ASEAN countries of their own currencies, instead of dollars, in transactions."

He said Tuesday's meeting of the two leaders "will give the Philippine government the opportunity to present the country's proposals on the matter."

Barican said the two leaders are also expected to discuss the Asian crisis "and the measures formulated by the (ASEAN) to speed up the region's recovery from the turmoil."

Malaysia, another ASEAN member, signed an innovative trade agreement with the Philippines in July to reduce dollar transaction costs between the two countries.

It entails calculating the balance of exports and imports between the Philippines and Malaysia every two months, with net transactions settled in U.S. dollars.

ASEAN also includes Indonesia, Laos, Myanmar, Singapore, Thailand and Vietnam.

President Joseph Estrada said later Monday he would discuss a proposal to use Southeast Asian currencies in regional trading with Brunei's ruler.

Estrada said he would bring up a proposal to use Southeast Asian currencies in regional trade transactions to enable countries in the region to save U.S. dollar reserves.

The Manila government is studying how the idea could be implemented, Estrada said, adding the Philippines and Malaysia already are practicing it to a limited extent.