NEW DELHI: Business leaders of Asian nations today decided to promote new free trade agreements and strengthen the existing pacts to use them as building blocks for creating a Free Trade Area of the Asia Pacific (FTAAP).
According to a joint statement issued after the 4th Asian Business Summit, economic partnership agreements and FTAs will bind Asian economies together and promote greater regional cooperation for expanded trade in goods, services and greater cross-border investment flows, besides dismantling of non- tariff barriers. Continue reading
On 25 December 2011, the government of Peoples Republic of China and Japan unveiled plans to promote direct exchange of their currencies. This agreement will allow firms to convert the Chinese and Japanese currencies directly into each other, thus negating the need to buy dollars. This deal between China and Japan followed agreements between China and numerous countries to trade outside the sphere of the US dollar. A few weeks earlier, China also announced a 70 billion Yuan ($11 billion) currency swap agreement with Thailand.
After visiting China, the Prime Minister of Japan Yoshihiko Noda went on to India and signed another currency swap agreement with the government of India. These currency agreements in Asia came in a year when the countries of the Association of South East Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) were seeking to deepen ways to strengthen their firewall to protect their economies from the continued devaluation of the US dollar. In the year of the ‘Eurozone crisis’ when the future of the EURO as a viable currency was fraught with uncertainty, many states were reconsidering holding their reserves in the US dollar.
Continue reading article: China And Japan Currency Swap: Nail In US Dollar’s Coffin (Eurasia Review)