As is known, currently, global banking problems have the potential to spill over to other countries, including the ASEAN.
"This step also includes encouraging exports and investment, so that the balance of payments and foreign exchange reserves can be strengthened," Warjiyo stated in Badung District, Bali, on Friday.
Warjiyo made the statement during a joint press conference at the 1st ASEAN Finance Ministers and Central Bank Governors (AFMGM) 2023 meeting.
However, beyond that, he said currency diversification was also an important initiative in the region, so the ASEAN agreed to strengthen external and financial resilience, among others, through the use of local currencies to support cross-border trade and investment in the ASEAN region.
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Current challenges and high dependence on major currencies for settlement of international trade and investment can increase vulnerability as well as increase risks to financial stability in the ASEAN.
In this aspect, the 1st AFMGM agreed that the Capital Account Liberalization Working Committee would be tasked with developing guidelines on the cooperation framework for settling ASEAN local currencies.
To further strengthen existing guidelines as part of the development of capital account liberalization, Warjiyo said the ASEAN would form an ASEAN Local Currency Transaction Task Force.
"That way, we will have strong and focused discussions on the ASEAN local currency transaction framework and improve guidance on the ASEAN local currency settlement cooperation framework," he remarked.
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Translator: Agatha O, Azis Kurmala
Editor: Yuni Arisandy Sinaga
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