"Common Asian currency possible"

[Diane Monaco]

At 07:31 AM 5/28/2002 +0530, you wrote:
>BEIJING: Asia could eventually create a common currency similar to the euro,
>but the region should focus now on measures like currency swaps to prevent
>another economic crisis, a Japanese finance official said on Sunday.
>
>Such currency swap arrangements were needed to head off future currency
>fluctuations since other measures, such as improved liquidity at the
>International Monetary Fund...
>
>China has already signed deals with Japan and Thailand and is in talks with
>the Philippines and Malaysia. Korea has an arrangement with Japan, and has
>also talked to Thailand, Malaysia and the Philippines...
>
>"If regional financial cooperation is to be further deepened, even
>establishing an Asian common currency might not be an impossible goal,"
>Kuroda said.
>
>"Actually the introduction of a common currency basket could be the very
>first step towards this goal."
>
>Europe had shown that major economic and political problems could still be
>worked out, even if it took decades, Kuroda said.

Currency swaps could be very useful and beneficial at this time for Asia to 
ward off potential financial instability.  But proceeding with even deeper 
financial cooperation/integration without economic integration will benefit 
capital owners far more than others.  Europe was a common market long 
before it had a common currency basket -- I believe 20 years before.

Diane