Obviously, the main currencies used in ASEAN are US dollar, Euro, UK pound, and the Japanese yen. This section shows the comparison of those currencies to RMB in recent years.
As mentioned earlier, the most important currency for ASEAN is US dollar. There are several reasons behind this. First, ASEAN’s currencies were originally fixed to US dollar since the countries would like to import macroeconomic stability from US dollar. With the mismanaged U.S. monetary policy, ASEAN countries would like to delink this linkage.
Second, exchange rate stability is important for intra-regional trading. Since most countries have stabilized their currency to US dollar, US dollar then automatically provide a high degree of exchange rate stability.
According to Rövekamp, Frank, Hilpert, Hanns Günther (Eds.) (2014), the share of currencies invoiced in exports of Asian and Pacific countries (not include…