Cabinet support for inter-Asean transactions in local currencies

The caretaker cabinet on Tuesday approved a draft declaration to promote use of local currencies in transactions between member states of the Association of Southeast Asian Nations.

Deputy government spokeswoman Rachada Dhnadirek said the cabinet endorsed the Asean Leaders' Declaration on Advancing Regional Payment Connectivity and Promoting Local Currency Transition.

Asean leaders would approve the declaration at the 42nd Asean Summit in Labuan Bajo, Indonesia, on Thursday, she said.

The declaration would promote economic growth and stable financial transactions in the region and protect it from external fluctuations, Ms Rachada said.

However, she said, the declaration would neither be signed nor result in any legal obligation.