Wednesday, May 23, 2018 6:00:42 AM - Markets open
VN-INDEX 985.91 -29.07/-2.86%
HNX-INDEX 116.72 -2.94/-2.46%
UPCOM-INDEX 53.73 -1.05/-1.92%
Malaysia, Thailand, Indonesia launch currency framework
Nikkei - 12/12/2017 4:21:58 PM
 (0 ratings. You must sign in to rate.)
The frameworks follow a pact between the three members of the Association of Southeast Asian Nations, or a 10-country bloc also known as Asean, signed in 2015 aimed at promoting cross-border trade and investments.
 
Last year, trade within Southeast Asia contributed $521 billion, or 23.5% of total trade, while intra-Asean investments rose to a record level of $24 billion in 2016, accounting for 25% of total foreign investment flows into the region.
 
"Intra-Asean partnership is critical for regional integration in support of our economies and financial systems," said Bank Negara Malaysia Governor Muhammad Ibrahim. "We expect this to be strengthened further, supported by the strong growth of intra-Asean trade."
 
Malaysia's bilateral trade volume totalled $13.8 billion with Indonesia and $13 billion with Thailand in 2016. However, only 5.8% and 11.4% of Malaysia's trade with Indonesia and Thailand, respectively were settled in local currencies, Muhammad noted.
 
Economists said the nascent move could help increase the use of local currencies among Asean countries, although any effect on trade and investments could be seen only in the longer-run.
 
"Asean is looking for more integration but not going the Eurozone path of creating common currency," said CIMB Investment Bank's Economist Michelle Chia. "Using more of our own currencies is a matter of getting liquidity and this cross-country cooperation is the first step."
 
Banks appointed to support the rupiah-ringgit framework include Bank Rakyat Indonesia and CIMB Group Holdings, while Bank Mandiri and Bangkok Bank Public were among those appointed for the rupiah-baht framework.
 
All three frameworks--rupiah-ringgit, rupiah-baht, and expanded baht-ringgit-- will be effective from Jan. 2, Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand said in a joint statement. The effort aims at cutting transaction costs, broaden trade settlement options, and boost efficiency.
 
"These initiatives are part of the continuous effort to promote a wider use of local currencies to facilitate and boost trade and investment in these countries," the central banks said.
 
The central banks have also named banks such as Malayan Banking and The Siam Commercial Bank for the ringgit-baht framework. In addition, the baht-ringgit settlement framework is also expanded to include direct investment to enrich the existing trade transactions.
 
Read original article here
Newer News
17/04 Trump says US could rejoin TPP if deal improved. How hard would it be?
31/03 Thailand wants to join CPTPP this year: Deputy PM
30/03 CPTPP likely to launch early 2019
22/03 Dollar lower, stock markets 'tepid' before Fed
09/01 DOC launches sunset review of anti-dumping measure on Việt Nam wind towers
03/01 Britain interested in joining Trans-Pacific trade deal after Brexit: FT
28/12 Oil prices close at 2.5-year peak
14/12 China raises market rates to fend off financial risks, growth cools
14/12 Brexit will be a key challenge for 2018, says next euro zone finance chief
14/12 Fed raises interest rates, keeps policy outlook unchanged for 2018
Older News
11/12 Oil prices drop on increased U.S. drilling activity
11/12 Rubber farmers are getting slammed by low prices — one company wants to fix that
30/11 Oil edges up in timid trading ahead of OPEC meeting in Vienna
28/04 Dollar index edges up, but poised for losing month
28/04 Oil prices face second weekly loss as oversupply lingers
28/04 Asian stocks tick up, euro subdued as ECB maintains easing bias
26/04 Oil falls on bulging U.S. crude inventories, record global supplies
26/04 Asian stocks hover near two-year highs on U.S. optimism, euro steady
25/04 Euro pauses after rally, Canadian dollar hit by U.S. duties on lumber
25/04 Asia stocks, euro steady as markets pause for breath after French election
 
Newsletter Signup
Top Stories
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Draft decree on State monopoly in trade submitted to Government
CPI ups 0.46% in January
Market Update
Last updated at 3:11:03 PM
VN-INDEX 985.91 -29.07/-2.86%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.