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JakartaPost-May 11

ASEAN leaders declared at this week’s summit in Labuan Bajo, East Nusa Tenggara, that member countries should use their own currencies more often in intraregional trade, as the bloc aims to insulate the region from external volatility. ASEAN is seeking to improve its regional payment connectivity through initiatives such as the recently launched Indonesia-Malaysia quick response (QR) standard, which allows citizens of both countries to use QR codes and their local currencies to make payments in the other. The bloc is also encouraging the settlement of regional accounts in local currencies rather than with the US dollar, the go-to currency for international trade. Among ASEAN countries, Indonesia, Thailand, Malaysia and the Philippines have been developing their capacity for local currency settlement since 2017. Recently, the region has established the similar framework with China, Japan and South Korea. Read more at: https://www.thejakartapost.com/business/2023/05/11/defying-the-dollar-asean-pushes-for-greater-local-currency-use.html.