A single common Asian currency?

A newspaer article from Korea Daily reports that Asian Development Bank is launching a Asian currency unit. Single Asian Currency Comes a Step Closer to Reality

The Asian single currency, which so far only exists in the minds of economists and officials with international organizations, will take on more concrete reality soon. The Asian Development Bank plans to publicize the Asian currency unit (ACU), a notional unit of exchange based on a "basket" or weighted average of currencies used in the 10 ASEAN member countries plus South Korea, China and Japan, the Yomiuri Shimbun and others reported Friday. But that does not mean that any bills or coins will circulate any time soon. The ACU is only the first step toward the integration of Asian currencies, a “virtual currency” that takes into consideration GDP and trade volume of each of the 13 nations and serves as a gauge for governments to implement foreign exchange policies. So far, Japan and China have tried to make their own national currency into the Asian currency, but their jostling in effect cancelled out the efforts of the other. That is why the ACU is gaining support on the road to a single currency.

It is certainly good for Asia to have a single common currency. It is nevertheless another question whether we will have it soon, and against which currency the future common currency is likely to anchor.

Intra-regional trade is already very important in Asia. China is Japan’s largest import partner. China’s exports account for 18.3% of Japan's imports. Japan is also China's most important import origin country. The potential is even greater. Among the five-pairs of the world’s largest trade partners ( the other four being U.S. and Japan, U.S. and Canada, U.S. and Mexico, France and Germany),  China-Japan has the smallest overlapping of comparative advantages. The region (excluding Japan) is in effect already using a single currency, because every member pegs their currency in some way to US dollar.

Nevertheless, the political realties in Asia create barriers that are almost impossible to overcome. South-east Asian countries are suspicious about China’s ambition in dominating the region. And they don’t want to rely on Japan, either. Europe has multiple powers (U.K, German, France, Italy) that can check each other, and that actually help establishment of peace and cooperation both politically and economically. 

To increase economic cooperation, China and Japan needs to act responsibly, and I hope something can be worked out eventually, but only in the long term I suspect, given Japan's lukewarm attitude toward economic cooperation. Japan's isolationism economic policy and distrust of global integration is deeply rooted in history, and is further reinforced by the domestic problem particularly in the banking sector. I have to say that Japanese-led Asian Development Bank is very enthusiastic in regional cooperation, but how much supports they can obtain from home remains a big question as Japanese offiicals sent to ADB usually do not have much political influence at home.

Korea is another important factor. If Korea can double its income, with its 50 million population (excluding North Korea), it will become a serious global player both economically and politically. Note: France has a populatoin of only 60 million.

Finally, a paper by Professors Alberto Alesina, Robert J. Barro, and Silvana Tenreyro at Harvard University finds that there are little gains for any countries to adopt Japanese Yen as a common currency, mainly becasue low trade integration of Japan with outside world (except with the United States), as well as the low comovement of price and output. Japan is quite an isolated nation economically despite large financial contribution to the United Nations and other international organizations. To increase its role in international community, Japan definitely needs to open up further.

Optimal Currency Areas
Abstract: As the number of independent countries increases and their economies become more integrated, we would expect to observe more multi-country currency unions. This paper explores the pros and cons for different countries to adopt as an anchor the dollar, the euro, or the yen. Although there appear to be reasonably well-defined euro and dollar areas, there does not seem to be a yen area. We also address the question of how trade and co-movements of outputs and prices would respond to the formation of a currency union. This response is important because the decision of a country to join a union would depend on how the union affects trade and co-movements.

Comments

[Freelance Researcher Code 00115679 NRCT 90 UNESCO 53000]

You can notice that why Baht value is very strong in these days because Taksin and his Care Taker Carbinet set up Baht value rigid for beneficial of their dirty money from corruption can change to foreign curency in more value.Please notice why Taksin freguent go to Europe.

[SAULAT KAMRAN]

Subject: A proposal to build a South Asian Union (SAU) like European Union by expanding SAARC states.
His Excellencies,
Presidents, Prime Ministers, Kings, Head of Governments & States, Political & Religious Leaders, Intellectuals, Educationists, Economists, Welfare Organizations, Mass People of South Asian region.
Peace be upon all of you, history is repeating from the creation of human life till now and will be repeated until the last final judgment of Creator. Actually, Creator created us as his best creation of life but we divided it into different nations, religions, cultures, languages, ideologies, etc in several thousands of years since the appearance of 1st human Adam (PBUH). We don’t know when the human life on earth will be finished for ever on dooms day, but some think that human life never stop repeating it’s wrongs. Now we have seen that the days of the human being are becoming more critical, insecure, divided among our selves in different ideas, increasing of poverty, and destruction of economy of some nations in comparison with the economy of some rich countries of the west. So the time for South Asian nations to unite as a strong body which is most caring for the inhabitants of this region has come, and in this way, we can develop ourselves. I have no right to waste your valuable time, but my heart is pressing me to place this proposal or advice to the holy hearts of our great rulers of the people of SAARC countries.

Proposal for future South Asian Union (SAU)

1. The mass people of this region want to abolish visa system for them selves in order to enjoy traveling facility freely and free trade among the regional countries like EU states. We can include Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Jordan, Lebanon, Palestine, Syria, Turkey, Cyprus, Iran, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Myanmar, Thailand, Cambodia, Laos, Vietnam, Malaysia, Indonesia, Singapore, Brunei, China, Mongolia, North Korea, South Korea, Japan & Philippine. The Afghan president his Excellency Mr. Hamid Karzai and his Government also shows interest for entering into SAARC.

2. If we can include thirty seven more countries (Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Jordan, Lebanon, Palestine, Syria, Turkey, Cyprus, Iran, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Myanmar, Thailand, Cambodia, Laos, Vietnam, Malaysia, Indonesia, Singapore, Brunei, China, Mongolia, North Korea, South Korea, Japan & Philippine) with the seven countries of SAARC (Pakistan, India, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives), then this organization or union will be one of the strongest unions. Then we can establish a powerful single currency like EURO as, for example SACU (South Asian Currency), dollar, or any other selected by the forum. And currency value can be fixed by averaging the currency values of the nations concerned.

3. All states will keep there own national flags as state flag and one common union flag, like that of EU.

4. We can establish joint military command council for the defense of the whole region like EU. That means we can unite in a union to ensure human life security along with a strong economy like European Union.
I do not know when the people of this region of South Asia will start to feel love and affection for each other, and will be united. But we should try to establish a golden future for ourselves. If successful, then generation after generation of this region will remember you for your kindness. God bless us with eternal & external peace.

Yours,
Saulat Kamran
E-Mail Address: saulat@dhaka.net
Website: http://www.southasianunion.net
House No -28, Road No-4, Dhanmandi R/A.
Dhaka, Bangladesh.

[SAULAT KAMRAN]

Proposed Road Map of SAU

. Marching a step ahead to form South Asian Union (SAU) is good sign for the people of the region. We may be of different cultures, religions, languages etc but we all are human and descendents or genealogy of first parents-Adam and Eve (p.b.u.t.).
We all have to come closer and make ourselves ambitious to lay down the foundation of the Union. Proposed 44 countries are mentioned below:
Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Jordan, Lebanon, Palestine, Syria, Turkey, Cyprus, Iran, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan, India, Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives, Myanmar, Thailand, Laos, Cambodia, Vietnam, Malaysia, Singapore, Indonesia, , Brunei, China, Mongolia, North Korea, South Korea, Japan and Philippine.

Process of South Asian Union (SAU) Implementation

1. Forming union by including 44 countries as mentioned above.
2. The Nations of the region can form South Asian Parliament by approving the appointment of Presidents, Kings, Prime ministers, Foreign ministers, Home ministers, Defense ministers & ministers for trade & commerce as members of the SAU parliament.
3. Establishing a powerful single currency like EURO, for example South Asian Currency (SACU) or dollar or any other selected by the forum. And valuation can be fixed by averaging the currency values of the nations concerned.
4. Abolishing visa system in order to promote traveling freely, and adopting free trade among the regional countries.
5. Forming a joint military council to establish security of state, countries of the union & for common people.
6. Paving ways for the people of the Union to seek jobs according to their capabilities.
7. Making good uses of cultural and sports organizations through which the participating nations can establish their identity to understand each other.
8. Funding should be made by member nations to establish Research Centers for medicines, incurable diseases, and science & technology for the benefit of general people.
9. Establishing Bank such as Union Bank of South Asia to educate mass population, provide fund for natural disaster. Also making ways to drive homeless and astray people into employment through cottage industries to make their livelihood better so as to stop them from becoming smugglers, miscreants, or terrorists.
10. Regarding child labor, concrete steps should be taken by providing free education established by the Union in the form of NGO. Orphans to be included in this establishment.
11. Each state should be responsible to stop smuggler from drug/ arms trafficking. Also find ways to stop women & children trafficking.
12. State to State disputes should be resolved for the best interest of the people. If necessary, the SAU may be called in the process of settlement.

Yours,
Saulat Kamran
E-Mail Address: saulat@dhaka.net
Website: http://www.southasianunion.net
House No -28, Road No-4, Dhanmandi R/A.
Dhaka, Bangladesh.

[del boy]

When I worked in a mental hospital we had an inmate who thought their was a plot for a one world government...with Asia Africa and Europe all on the single currency road, is maybe he right?/

[Mr Bushel Georgia]

Abolish currency! One world...No Money...Pay using love bruv! Let's make millionaires of love not money!