ASEAN Countries Discuss Reducing Dependence of Financial Transactions on US Dollar and Shifting to Use of Local Currencies for Settlement

SHANGHAI, Apr 25 - The ASEAN Briefing website published an article on March 29 that on March 28, the official meeting of ASEAN finance ministers and central bank governors opened in Indonesia.

Topping the agenda at the meeting was a discussion on how to reduce reliance on the dollar, euro, yen and pound for financial transactions and move to settlement in local currencies. The meeting discussed efforts to reduce dependence on major currencies through the Local Currency Transaction (LCT) scheme.

This is an extension of the LCS scheme that has previously begun to be implemented among ASEAN members.

This means that the ASEAN cross-border digital payment system will be further expanded and allow ASEAN countries to use local currencies for trade.