RP, RI may trade in own currencies

RP, RI may trade in own currencies

MANILA (Bloomberg): The Philippines and Indonesia are studying
using their own currencies, instead of dollars, in bilateral
trade, Philippine President Joseph Estrada said Thursday.

Estrada, who met with Indonesian President B.J. Habibie after
a state visit to Singapore Tuesday, said the "intra-currency"
concept could help both countries preserve foreign reserves.

"We proposed that products produced by the Philippines and
Indonesia and traded between our two countries won't use dollars
anymore, so we can save our foreign currencies," Estrada said.

Because most Southeast Asian currencies weaken and strengthen
together against the dollar, employing pesos or rupiah in
bilateral trade would bring greater foreign exchange stability to
regional commerce.

Estrada earlier proposed to the nine-member Association of
Southeast Asian Nations, or ASEAN, using local currencies for
trading within the region. The Philippines and Indonesia are
founding members of ASEAN.

The Philippines and Malaysia, another ASEAN member, already
have an agreement to settle some bilateral trades using their
local currencies.

Indonesian Foreign Minister Ali Alatas said the adoption of
the intra-currency concept could eventually lead to a single
ASEAN currency along the lines of the Euro.

"We are talking in the long term when we are talking of the
use of a single currency, like the Euro, in ASEAN" Alatas was
quoted as saying in a statement issued by the Philippine
government.

"This will take about two decades before it becomes a
reality."