The next steps in ASEAN+3 monetary integration

"Now is probably not a great time to be talking about further monetary integration – even if it is in Asia. But this column argues that the ASEAN+3 has taken a number of significant steps recently to further deepen monetary integration. The next steps should be to introduce a regional weighted currency basket and expand membership.

On 3 May 2012, on the sidelines of the Asian Development Bank’s Annual Meeting in Manila, the ASEAN+3 took a number of significant steps to further deepen monetary integration in the region (Joint Ministerial Statement 2012). In the midst of a flurry of other activities and announcements – including the sharp increase in ADB lending last year and the launching of the ASEAN Infrastructure Fund – these important steps went relatively unnoticed.

The most significant outcome of the Manila meeting was the upgrading of the ASEAN +3 Finance Ministers Meeting (AFMM+3) to the ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting (AFMGM+3); the central bank governors of the 13 member countries (plus Hong Kong) have been invited to join. In the past, the region’s firewall for crisis prevention and crisis resolution had been run solely by finance officials responsible for tax and expenditure policies. Officials responsible for monetary and exchange-rate policies were left out. This major gap has now finally been filled..."

at http://www.voxeu.org/index.php?q=node/8038