Cabinet approves Asean payment system in local currencies
The caretaker Cabinet approved a draft declaration to promote the use of local currencies in transactions between Asean member countries on Tuesday.
Regional leaders will consider the draft declaration during the 42nd Asean summit on Thursday at Labuan Bajo, Indonesia, said government spokesperson Rachada Dhnadirek.
The draft – officially called the Asean Leaders' Declaration on Advancing Regional Payment Connectivity and Promoting Local Currency Transition – is part of the plan for regional economic integration under the Asean Economic Community Blueprint 2025, she added.
It covers innovation and infrastructure development to support seamless and safe cross-border transactions, especially by electronic payment. The draft would also establish a local currency transaction taskforce, protect the region from external fluctuations, and set up flexible foreign exchange criteria to support trade and investment, she explained.
Asean leaders have appointed finance ministers and central bank governors to supervise regional payment connectivity and consider guidelines to promote local currency transactions.
The draft is not considered a binding treaty, Rachada said.
