SHOULD ASEAN ADOPT A ONE-CURRENCY SYSTEM?

The Southeast Asian region, with the Association of Southeast Asian Nations (ASEAN), considers a common currency akin to the Euro. Pros include increased trade and economic unity, but challenges involve loss of monetary autonomy and potential economic disparities. Drawing from the Euro's experiences, careful planning and strong frameworks are essential for ASEAN's success with a common currency, enhancing its global economic influence.

Narrated by Tom McKay
Video Edited by iyanbriandi

Brought to you by the Behind Asian Team.

[BehindAsia]

Do you believe adopting a shared currency would be a beneficial step for the region's economic future, or do you see potential drawbacks that outweigh the advantages? Let us know down below!

[lingth]

I think Singapore PM Lee said it is not likely to happen, the economy progress of the different nations is too far apart unlike Europe.
the current system that Singapore uses allows flexibility to control the exchange rate.

[thulomanchay]

ASEAN has thought about having a common currency like the Euro, but decided against it.
They also decided not to have open borders, (this may be later).
They also are specific about not being a military alliance.
On the quiet, they are not going to make the mistakes the Europeans made.
ASEAN is about co-operation, not re-making each other.

[jilldawson]

No, it definitely can't be implemented for the following reasons:
1. Cambodia is under political and economic influence/control by China.
2. The political instability in Myanmar (Burma).
3. The region consists of too many different types of governments such as feudal, socialist, and capitalist, ...
4. No country in ASEAN has the same level of development.
5. No country in ASEAN has the same economic structure.
6. The region has high levels of differences in cultural, linguistic, and religious diversity.
7. Countries in the ASEAN are dependent on opposing superpower countries.
...

[Kevin-fqzh]

singapore & brunei have a currency interchangeability agreement since 1967… i’m surprised you didnt even mention that in the video.

[Dominus_Potatus]

I don't think it will happen.
Singapore as the most prosperous one will reject the idea, similar how UK kept its Poundsterling.
Myanmar is a wild card similar to how Greece in EU.

The original member of ASEAN (Indonesia, Thailand, Philiphines, Malaysia, and Singapore) will hold a lot of power and I don't think rest of the members will take it easily.

[DonkiDonkey]

Euro is the reason a common BRICS and ACU currency is dead-on-arrival. Ultimately, the more prosperous nation will have to subside the poorer ones. In exchange, the poorer nations have to cede control of their public policies, which obviously benefits the rich nation. They effectively function as one nation with more inefficiencies and the votes in poorer places don't count towards policy making. The rich nations don't get to spend their money efficiently, and the poor lose autonomy. In the end, no one is happy but they are stuck because leaving is even more costly.

[kicokyaw]

When comparing to the EU and the Euro, you have to keep in mind that comparatively Euro countries have economies that are only moderately wealthier and less advanced than each other. Yes Germany is richer than Slovakia, but its not fundamentally a different economy. In ASEAN, you literally have economies at different historic stages of development. You have countries like high end Singapore, which is a post industrial first world developed country and then you have rapidly developing countries like Thailand and Vietnam, and then you have literal preindustrial 3rd world countries like Myanmar and Laos, one of which is in the middle of a civil war. So this would make the EURO and EU transition look like a cakewalk.

[goldenspoon]

No. Countries are too varied in development stages. Only Singapore and Brunei have currency agreements. If it were to expand, it should be to South Korea and Japan first, which are already approaching parity.

[hakim]

Countries like Singapore, Brunei, Malaysia and Thailand will not benefit from this though

[muchafdlolludin]

Mark my word : "The function of ASEAN is to focus on the economy not to become a battlefield between superpower countries like Ukraine."
Salam dari ❤ 🇮🇩

[chrisk]

You can’t tailor interest rates to a local market with a region wide currency. Wouldn’t work.

[aforadorable]

*ASEAN currencies as of July 31, 2023:*
1. Brunei - $1 : 1.33 Brunei dollar
2. Singapore - $1 : 1.33 Singapore dollar
3. Malaysia - $1 : 4.51 Malaysian ringgit
4. Thailand - $1 : 34.24 Thai baht
5. Philippines - $1 : 54.89 Philippine peso
6. Myanmar - $1 : 2, 101.26 Myanmar kyat
7. Cambodia - $1 : 4, 126.00 Cambodian riel
8. Indonesia - $1 : 15, 087.90 Indonesian rupiah
9. Laos - $1 : 19, 103.27 Laotian kip
10. Vietnam - $1 : 23, 687.50 Vietnamese dong

*ASEAN+3 currencies as of July 31, 2023:*
1. China - $1 : 7.15 Chinese yuan
2. Japan - $1 : 142.15 Japanese yen
3. South Korea - $1 : 1, 275.74 South Korean won

*What are your thoughts?*

Timor-Leste - $1 : $1 (They're using US dollars.) 🏆

[aforadorable]

We ❤ ASEAN. We cooperate not compete.
We are unique and so our currencies.

[tristangamz]

As someone who lives in Singapore i think this’d be a terrible idea

[thomasjuniardi]

Republic of Serbia wanted to joint ASEAN, so there's something wrong with EU and BRICS. ASEAN are working fine without one currency system, don't fix something that isn't broken. 😊

[saberkok]

If you have been into group projects in a school, you would know that there will be a few member who did no contribution but yet they pass together. It will be the same case.

[komeratparewa]

Difficult if there is an asean currency. The economy of each country is different, some are very advanced and some are backward.
Developed countries will bear underdeveloped countries.
Better to use Local Currancy Settlement (LCS).
This means that each currency can be used for export and import transactions within ASEAN.

[taetaeya]

Absolutely not, Singapore. Thailand and Vietnam will be the only countries sustaining the currency and the rest will just be riding of it.

[edwinholcombe]

I can't imagine tethering nations with low corruption to nations with of the worse corruption in the world.