(20th East China Expo) Promotion of Local Currency Settlement Cooperation Consensus among Central Bank Officials of ASEAN Countries

Nanning, September 18 (China News Agency) - Promoting the diversification of the international monetary system is becoming a common expectation for emerging economies and developing countries. Officials from multiple ASEAN central banks stated at the 15th China ASEAN Financial Cooperation and Development Leaders Forum held in Nanning, Guangxi on the 18th that dependence on a single currency should be reduced and cooperation in local currency settlement should be promoted.

Against the backdrop of global economic weakness, economic and trade cooperation between China and ASEAN has risen against the trend. The trade volume between the two sides has increased by 16.8 times over the past 20 years and has been the largest trading partner for three consecutive years. In the first eight months of this year, the total trade value between China and ASEAN was 4.11 trillion yuan, a year-on-year increase of 1.6%, accounting for 15.2% of China's total foreign trade value.

Close economic and trade exchanges bring about a large number of cross-border transactions and payment demands, and how to reduce risks and uncertainties has attracted attention from all parties. The Governor of the Central Bank of Myanmar, Dan Danrui, believes that innovative solutions are needed to strengthen cooperation. Reducing reliance on a single currency, promoting local currency settlement, or a new path.

Alisana Mahasentana, Assistant Governor of the Central Bank of Thailand, agrees with this plan, emphasizing that promoting the use of local currencies helps strengthen trade and reduce the risk of currency exchange rate fluctuations for Thai Chinese enterprises. She also revealed that the Bank of Thailand is currently in discussions with the People's Bank of China to further strengthen cooperation in local currency settlement between the two countries.

The Governor of the Central Bank of Laos, Benle Novosevoraon, also believes that with the rapid growth of trade and investment between ASEAN and China, both sides should explore more opportunities to use their own currencies for settlement, thereby reducing transaction costs and minimizing risks.

For a long time, the overly singular international monetary system has been widely criticized. Especially in recent years, the United States has aggressively adjusted its monetary policy, bringing huge financial risks to developing countries, and more and more countries are promoting cross-border transactions and local currency settlements more frequently.

Dan Danrui has noticed that many emerging economies and developing countries are seeking to reduce their dependence on the US dollar. In terms of Myanmar China cooperation, it is necessary to promote direct exchange between the Chinese yuan and the Burmese dollar, reduce reliance on third-party currencies, and improve cross-border transaction efficiency. This will not only benefit traders and enterprises, but also substantially deepen economic ties between the two sides.

In addition, cross-border payments also contribute to improving financial connectivity. Alizana Mahasentana mentioned that Thailand has established QR code payment contacts with some ASEAN member countries and hopes to establish QR code payment contacts with China on this basis.

The Vice President of the Central Bank of Cambodia, Luo Su Wannarie, emphasized that the National Bank of Cambodia, as the country's monetary and banking regulator, supports the use of RMB in trade settlement and cross-border payment. Chinese payment platforms such as Alipay and WeChat payment have also been widely used in Cambodia.

To promote cooperation in local currency settlement and promote the diversification of the monetary system, officials from central banks of ASEAN countries have reached a consensus on this. China is also deepening financial cooperation with ASEAN countries through policy innovation and supply.

Zheng Wei, Deputy Director of the State Administration of Foreign Exchange of China, stated that in the future, we will deepen the reform of foreign exchange business facilitation, promote the facilitation of high-quality enterprise trade and cross-border financing. At the same time, we will guide more financial resources to invest in the joint construction of the "the Belt and Road" key projects, further promote the multilateralization of the Chiang Mai Initiative, and maintain regional financial stability.

"As ASEAN and China deepen their cooperation and strengthen their relationship, their understanding of economic integration and mutual culture will also deepen." Dan Danrui believes that through collective determination, foresight, and innovation, ASEAN and China will pave a path to prosperity, benefiting not only their respective countries but also the entire region.