Sign up | Log in



Home  >>   Daily News  >>   Asean News  >>   Capital Markets  >>   Asia told to review single currency
NEWS UPDATES 7 August 2010

Asia told to review single currency

Related Stories

March 24, 2010
Asean+3 launches $120b fund to mitigate crisis impact

March 16, 2010
Obama’s Asian trip seen as attempt to restore US influence

March 15, 2010
Japan to increase investment in Asean

Thirty percent of Indonesian exports to China use FTA facility

March 14, 2010
Let Obama be a PR man for Indonesia, said local university rector

March 12, 2010
Malaysia considers joining regional trade pact with US

 upsets Indonesian president

ASIAN countries should look at the Asian currency unit, a single currency, more seriously to improve regional cooperation and development, according to the Asian Development Bank Institute (ADBI).

The creation of a single Asian currency is needed as East Asia is set to be the biggest economic zone in the world by 2020, exceeding North America and the European Union, said Dr. Masahiro Kawai, ADBI dean and chief executive officer.

"We have to start. It is a long-run agenda but the recent global financial crisis has given us some opportunities to do this," he said at the ADBI-Malaysian Institute of Economic Research (MIER) joint dissemination seminar in Kuala Lumpur yesterday.

Kawai said Asian economies should adopt policies that will enable them to respond to the more challenging global economic environment and to achieve balanced and sustainable growth.

The areas identified are improve macroeconomic stability, rebalancing production, enhancing social protection, deepening the financial system and forging regional cooperation, he said.

Macroeconomic stability can be improved by increasing the effectiveness of monetary policy, fiscal policy and management of exchange rates and capital flow, Kawai said.

"Some Asian economies should not go on keeping their exchange rates stable against the U.S. dollar and amassing international reserves. This would be the same recipe that contributed partly to the unsustainable global imbalances," he said.

Kawai said Asian countries need to promote measures to support increased infrastructure investment to create a seamless Asia, including an Asian Infrastructure Investment Fund. "There is also need to encourage development of regional bond markets by reinforcing the Asian Bond Market Initiative and Asian bond funds and supporting the issuance of bonds denominated in Asian currency units," he said.

"Domestic bond market development is to enhance resilience to external shocks, such as volatile capital flows, and make it easier to recycle savings for investment and consumption within the region."

Kawai also said that Asian economies needed to rebalance their production to encourage needed adjustments on the economy's supply side, including rising productivity, especially in the services sector.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand