Differences constrain single currency proposal for E. Asia

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Differences constrain single currency proposal for E. Asia

JEJU - There are many constraints to forming a monetary union in East Asia and countries in the region need to address them if they are serious about adopting a common currency, Asian Development Bank President Tadao Chino said yesterday.
Speaking at a seminar titled "A Single Currency for East Asia - Lessons from Europe," Chino said there are significant differences in income across the region, inadequate mechanisms and institutions for regional-level resource pooling and a lack of political integration.

"Asian economies need to start seriously considering this question, even if there might be no definitive answer in the immediate future. If the answer turns out to be positive, the preparatory groundwork alone would involve considerable effort. Judging by the European experience, the time required to complete the process also won't be short," he noted.

In the wake of the 1997 financial crisis, the pace of monetary and financial cooperation in East Asia has picked up, advancing most in the areas of information exchange and policy dialogue, and resource pooling and sharing. Less progress has been made in macroeconomic coordination and exchange rate policies....MORE

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