The official meeting of all ASEAN finance ministers and central bank governors kicks off on Tuesday (March 28) in Indonesia. The most important agenda is discussions to reduce the dependence of the US dollar, euro, yen and British pound on financial transactions. and move to pay in local currency
The meeting discussed efforts to reduce dependence on the base currency. through the Local Currency Transactions (LCT) Scheme and is an extension of the previous Local Currency Settlement (LCS) Scheme that has already been implemented among ASEAN members.
This means that ASEAN’s cross-border digital payment system will expand further. And allow ASEAN countries to use their local currency for trade. An agreement on such cooperation was reached between Indonesia, Malaysia, Singapore, the Philippines, and Thailand in November 2022, according to the Indonesian banking regulator on March 27. The Bank of Indonesia is preparing to abandon Visa and Mastercard while introducing a payment system in its own country.
Indonesia’s President Joko Widodo has urged regional administrations to start using credit cards issued by local banks and gradually stop using foreign payment systems. He argued that Indonesia needed to protect itself from political disruption. It cited sanctions targeting the Russian financial sector from the United States, the European Union and its allies over the conflict in Ukraine.
among ASEAN nations Only Singapore has imposed sanctions on Russia. while other ASEAN countries continued to trade with Russia.
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