Although different in goals since their inception, the Association of Southeast Asian Nations and the European Union have always been compared to one another in discussions.
Of course, it would be inevitable that investors will talk about the possible of a unified Asian currency for ASEAN, same as what happened to the European Union with the EU. Would such a shift be possible?
Well, the better question to ask is – would such a system work for a diverse economic ecology such as what is found in ASEAN? To answer that, it would be best to first look at the advantages and then the drawbacks of a unified currency.
Let us look at the advantages of having a unified currency first. Here are some of those pros that proponents of a single Asian currency are rallying behind:
Now, let’s move on to the disadvantages. What do opponents of a unified Asian currency are saying about this side of the coin?
Drawbacks of a Single and Unified Asian Currency
Here are some of the disadvantages that opponents are citing as reasons why a unified Asian currency should not be introduced in the first place:
This could become costly for all states involved, although proponents are quick to point out that this would only be for the short term.
In reality, it would take a significant amount of time and not a few years of discussion and negotiations between ASEAN’s member nations before a unified monetary policy can be arrived. Much of these would be dictated by ongoing geopolitical upheavals and developments in the area, including the rise of China and the trade war with the United States.
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