Asian Financial Report
(Shanghai Forum)
Updated: 2006-05-18 09:54 3.4 ASEAN SWAP Arrangement (ASA), Mutual Exchange Network and Network
of Bilateral Swaps and Repurchase Agreements (BSA)
In August 2000, central banks of ASEAN 10+3 expanded the amount
of multilateral currency exchange program from 200 million US
dollars to 1 billion US dollars. In 2001, they extended the ASEAN Swap
Arrangement (ASA) and the Network of Bilateral Swaps and Repurchase Agreements
(BSA).
4. Trends for Future Development
4.1 Development in the contents of regional finance cooperation
A more flexible mechanism of currency exchange should be established to cope
for future crisis in Asia. And with the increase of bilateral and
multilateral negotiations between countries within and out of the region, the
need exists to expand the volume of currency exchange. And recently the
meeting of central banks of the Asia-Pacific region announced a second
contribution plan for the Asian bond fund in its news statement after the first
collection of 1 billion US dollars. This highlights the expanding scale
and scope in financial cooperation among Asian countries.
4.2 Prospects for Cooperation and Development of the "Asian Dollar"
Some scholars believe that an integrated currency will promote microeconomic
efficiency and microeconomic stability. It is predicted that in the next 10
years, the world will have three leading regional currencies areas; the Euro
area, the US dollar area and the Asian currency (Asian dollar) area. Under the
circumstances of deficiency in global currency, the trend is leaning towards the
establishment of a unified currency in the Asia-Pacific
region.
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