Key Asian bloc looking to dump dollar and euro media

RT.com
29 Mar 2023, 21:15 GMT+10

The ASEAN economic union reportedly wants to protect transactions from ?possible geopolitical repercussions?

The Association of Southeast Asian Nations (ASEAN) is set to discuss dropping the US dollar, euro, yen and pound sterling from transactions and moving to settlements in local currencies, according to the news magazine Tempo.

An official meeting of ASEAN finance ministers and central bank governors kicked off on Tuesday in Indonesia. A regional grouping that aims to promote economic and security cooperation among its members, ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

"Efforts to reduce dependence on major currencies through the Local Currency Transaction (LCT) scheme will be discussed. This is an extension of the previous Local Currency Settlement (LCS) scheme that has already begun to be implemented between ASEAN members," said the report.

Tempo specified that a digital cross-border payments system, allowing ASEAN member states to use local currencies in trade, would be expanded further. An agreement on such cooperation was reached between Indonesia, Malaysia, Singapore, the Philippines, and Thailand in November 2022.

Indonesian President Joko Widodo has urged regional authorities to abandon Visa and Mastercard payment systems and start using credit cards issued by local banks. Moving away from Western payment systems is necessary to protect transactions from "possible geopolitical repercussions," Widodo said.

Board member of the Indonesian Credit Cards Association (AKKI), Dodit Proboyakti, told RIA Novosti that Indonesia would apply the experience of Russia and its Mir payment system in promoting its own domestic financial network.

For more stories on economy & finance visit RT's business section

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Herald Globe.

More Information

62 ℉

Cloudy in Wenatchee

International

Section

Amtrak nearly at pre-COVID-19 ridership levels, says official

WASHINGTON D.C.: Amtrak CEO Stephen Gardner said this week that despite projected losses of $800 million for the current budget ...

US to pay $570 million to eliminate dangerous rail sites

WASHINGTON D.C.: The Biden administration has announced that it is providing grants worth $570 million to eliminate many dangerous railroad ...

No confirmation, as reports say King Charles going to France in fall

PARIS, France: According to a report by BFM TV, Britain's King Charles is considering a visit to France in September, ...

US to get tough as drone disrupts Pittsburgh airport

WASHINGTON D.C.: The Federal Aviation Administration has said that a drone sighting disrupted some flights at Pittsburgh International Airport this ...

New Oregon gun law being challenged in court case

PORTLAND, Oregon: A federal trial has begun in Portland, Oregon examining the constitutionality of a stringent gun control law approved ...

After removing Columbus statue, Philadelphia sued for return

PHILADELPHIA, Pennsylvania: Philadelphia Mayor Jim Kenney and members of the city's historical commission have been sued by a group which ...

Sports

Section