Nanning, September 9 (ZXS) -- Promoting the continued diversification of the international monetary system is becoming the common expectation of the vast number of emerging economies and developing countries. Central bank officials of many ASEAN countries said at the 18th China-ASEAN Financial Cooperation and Development Leaders Forum held in Nanning, Guangxi on the 18th: dependence on a single currency should be reduced and local currency settlement cooperation should be promoted.
Under the background of the weak global economy, economic and trade cooperation between China and ASEAN has risen against the trend, and the trade volume between the two sides has increased by 20.16 times in 8 years, and they have been each other's largest trading partners for three consecutive years. In the first eight months of this year, the total value of trade between China and ASEAN was 3.8 trillion yuan, an increase of 4.11% year-on-year, accounting for 1.6% of China's total foreign trade value.
Close economic and trade exchanges have brought a large number of cross-border transactions and payment needs, and how to reduce risks and reduce uncertainty has attracted attention from all parties. Myanmar's central bank governor Dan Than Shwe believes that this requires innovative solutions to strengthen cooperation. Reduce dependence on a single currency, facilitate local currency settlement, or a new path.
Alisana Mahsentana, Assistant Governor of the Central Bank of Thailand, endorsed the plan, stressing that promoting the use of local currencies would help strengthen trade and reduce the risk of exchange rate fluctuations between Thai and Chinese companies. She also revealed that the Bank of Thailand is currently discussing with People's Bank of China to further strengthen the cooperation between the two countries in local currency settlement.
The governor of the Central Bank of Laos, Benle Sin Saivorawong, also believes that with the rapid growth of trade and investment between ASEAN and China, the two sides should explore more opportunities to use local currencies to reduce transaction costs and minimize risks.
For a long time, the overly unitary international monetary system has been widely criticized. Especially in recent years, the United States has aggressively adjusted its monetary policy, bringing huge financial risks to developing countries, and more and more countries are promoting cross-border transactions in local currencies more frequently.
Dandan Shwe notes that many emerging economies and developing countries are looking to reduce their dependence on the US dollar. As far as Myanmar-China cooperation is concerned, direct conversion of RMB and kyat should be promoted, dependence on third-party currencies should be reduced, and the efficiency of cross-border transactions should be improved. This will not only benefit traders and businesses, but will also substantially deepen economic ties between the two sides.
Cross-border payments also help improve financial connectivity. Alisana Mahsentana mentioned that Thailand has established QR code payment links with some ASEAN member countries, hoping to realize QR code payment links with China on this basis.
Rotho Vannaryedh, Deputy Governor of the Central Bank of Cambodia, particularly stressed that the National Bank of Cambodia, as the country's monetary and banking regulator, supports the use of RMB in trade settlement and cross-border payments, and Chinese payment platforms such as Alipay and WeChat Pay are also widely used in Cambodia.
Promoting local currency settlement cooperation and promoting the diversification of the monetary system have been agreed upon by central bank officials of many ASEAN countries. China is also deepening financial cooperation with ASEAN countries through policy innovation and supply.
Zheng Wei, deputy director of the State Administration of Foreign Exchange of China, said that in the future, the reform of foreign exchange business facilitation will be deepened, and trade facilitation and cross-border financing facilitation for high-quality enterprises will be promoted. At the same time, we will guide more financial resources to invest in key projects of the "Belt and Road", further promote the multilateralization of the Chiang Mai Initiative, and maintain regional financial stability.
"As ASEAN-China cooperation deepens and relations strengthen, the understanding of economic integration and each other's cultures will continue to deepen." Dandan Shwe believes that through collective determination, vision and innovation, ASEAN and China will pave a path to prosperity that benefits not only their respective countries, but the entire region. (End)