RT.com
29 Mar 2023, 14:49 GMT+10
The regional 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.
READ MORE: Indonesia to ditch Visa and Mastercard
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)
Get a daily dose of Broadcast Communications news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Broadcast Communications.
More InformationLONDON, U.K.: This week, BP appointed Simon Henry, former Shell finance chief, to its board as a non-executive director effective September...
OTTAWA, Canada: With Canada Post struggling to maintain operations amid labour unrest, rivals like FedEx and UPS are stepping in to...
NEW YORK, New York - U.S. and global markets showed a mixed performance in Tuesday's trading session, with some indices edging higher...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
New Delhi [India], July 9 (ANI): The Delhi High Court on Wednesday directed a special screening of the controversial film 'Udaipur...
CANBERRA, July 9 (Xinhua) -- The Australian government is very concerned about U.S. threats to impose increased tariffs on pharmaceutical...
Bhopal (Madhya Pradesh) [India], July 8 (ANI): Madhya Pradesh Chief Minister Mohan Yadav and state Bharatiya Janata Party (BJP) President...
New Delhi [India], July 8 (ANI): In a strategic push to harness the power of AI for inclusive communication, the Ministry of Information...
Sasaram (Bihar) [India], July 7 (ANI): India's seamer Akash Deep's childhood friend, Vaibhav Kumar, said that the cricketer's sister,...
Birmingham [UK], July 7 (ANI): Following some promising signs at Leeds despite a five-wicket loss, the massive ceiling and unreal potential...