ASEAN reducing reliance on external currencies

KUALA LUMPUR — Greater economic integration among members of the Association of Southeast Asian Nations is accelerating efforts to build an independent and resilient regional financial system, aimed at reducing reliance on external currencies and enhancing monetary stability across Southeast Asia, according to a Malaysian analyst.

These moves are not meant to target any specific country, but rather reflect a desire to move away from external financial volatility and facilitate transactions using local currencies for intra-ASEAN trade, which will enable seamless cross-border transactions, provide greater market access for micro, small and medium-sized enterprises and also boost regional tourism, Lee Pei May, a political expert at the International Islamic University Malaysia, said in a recent interview with Xinhua News Agency.

"The push for the use of local currencies has been ongoing for some time, as it helps strengthen the economic integration of ASEAN member states — an important goal that ASEAN seeks to pursue. In fact, other regions are also moving away from relying too heavily on a single foreign currency, such as the US dollar, as external interest rates and shifting government policies may cause significant volatility in currency exchange," Lee explained, adding that volatility is undesirable in any business.