Monetary Integration Poses Many Questions

An economics issue I’ve been seeing in the headlines of international business articles is the emergence of an integrated monetary currency for Asian nations much like the Euro. Here is a Financial Express editorial around last week which contrasts a lot of things such as political and economic considerations before the integration out west was achieved.

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3 Responses

  1. Hey, this is a good read! I have a pint of interest in monetary (and political) integration.

    Hmmm…. AMU or ACU? I Prefer the Asian Currency Unit or just plain Asian Currency(hey, it can even be caled an ACE – ‘So, how many ACEs have you got?’)

    Will it happen in our lifetime? My personal opinion is that sub-regional integration has to first take place due to the varied market trends/situations – the Middle East, the Indian SubCon, China (and?), Japan-Korea, ASEAN, Central Asia. I think the Philippine Peso will have died out to an ASEAN currency first before we see a Pan-Asian monetary/financial integration.

  2. […] This post from Patrick’s blog points to an article about the possibility of a financial and monetary integration here in Asia. Imagine having just one currency, going to Hong Kong or Singapore, and buying there hassle-free. No need to worry about commission fees or low exchange rates. There are many pros and cons to this, but I do hope to see it in my lifetime. A currency at par with the mighty Euro and Dollar. […]

  3. “Will it happen in our lifetime?”

    – I don’t know but the indications are there. The growing trend towards regional trade and global direction of businesses point to a number of decades before the unification of currencies crystalize.

    As the material points out, businesses are the ones flirting with the idea currently so the different governments should eventually follow should the need ever really arise.

    I’ve already heard the issue as early as last year and those in the finance and accounting fields commented that the consolidation of currencies should make their lives easier. Far more than its effects on the traveler’s personal finance, businesses and individuals engaging heavily in financial transactions across the region should benefit the most from the stardardization.

    But then again there are reasons why the United Kingdom hasn’t joined the Euro fray. That’s worth looking into as well.

    Thanks for linking me up though btw.

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