APEC proposes parallel Asian regional currency

Ramani KANGARAARACHCHI

The Advisory Group on Asia Pacific Economic Council (APEC) Financial System Capacity Building Co-Chair Gary Judd proposed a parallel Asian regional currency which is less ambitious than a new global reserve currency.

Gary Judd

Delivering the welcome address at the inauguration of SEACEN Public Private Dialogue for the Asia Pacific Region he said that a parallel currency not just for Asia but for Asia and Pacific economies within APEC including the United States is a much better way to go.

He said at the moment Asian parallel currency excludes the US and advancing a competing currency it hints of confrontation. “Therefore the establishment of a currency which includes the US Dollar is a better way.

It will also enhance monetary and financial stability, and wider regional economic integration while contributing towards harmony and geopolitical stability,” Judd said. Judd said the value of the parallel currency would be fixed by reference to the currencies of the member economies but would not replace domestic currencies.

Economies would not be prevented from having exchange rate arrangements considered to be necessary for their own economies monetary or other conditions.

Their domestic currencies would adjust against the parallel currency according to the arrangements they have in place.

Control of their own monetary and other economic conditions would be enhanced because of greater stability of their currency with the parallel reserve currency.

Currency depreciation and appreciation would be available to respond to the consequences of an economy’s changing economic and other conditions.

He said many difficulties would have to be overcome to bring it to a fruitful proposal.

“But difficulties could be overcome and if the goal is desirable it should be given a try,” he said.