Economic Integration in Southeast Asia: The Pros and Cons of an ASEAN Single Currency

Economic Integration in Southeast Asia: The Pros and Cons of an ASEAN Single Currency
Should we pursue for ASEAN single currency? © Created by Akhyari Hananto

The ASEAN single currency has been a topic of discussion for many years, with the aim of promoting economic integration and increasing the competitiveness of the region. While there are certainly benefits to a single currency, there are also potential downsides. In this article, we will explore the pros and cons of an ASEAN single currency.

Keterangan Gambar (© Pemilik Gambar)


  1. Increased trade: A single currency would simplify trade transactions among ASEAN member countries by eliminating the need for currency conversions, which can be costly and time-consuming.
  2. Enhanced economic integration: A single currency would help promote economic integration among ASEAN member countries, making it easier for businesses to operate across borders and increasing investment opportunities.
  3. Increased stability: A single currency would provide greater monetary stability for ASEAN member countries, reducing the risk of currency fluctuations and economic instability.
  4. Increased regional influence: A single currency would increase the region's economic and political influence in the world, allowing ASEAN member countries to better negotiate trade agreements and other international agreements.
  5. Reduced transaction costs: A single currency would reduce transaction costs associated with exchanging currencies, as well as the costs of hedging against currency fluctuations.
  6. Increased tourism: A single currency would make travel within the ASEAN region easier and more convenient for tourists, potentially increasing the number of visitors to the region.


  1. Loss of control: Member countries would have to give up control over their monetary policy, which could be problematic for countries with different economic needs and priorities.
  2. Lack of fiscal integration: A single currency without fiscal integration could lead to fiscal imbalances and financial instability, as some countries may be tempted to overspend and run up large deficits.
  3. Different economic structures: The member countries have different economic structures and levels of development, which could lead to difficulties in setting a common monetary policy.
  4. Unequal distribution of benefits: The benefits of a single currency may not be equally distributed among member countries, with some countries potentially benefiting more than others.
  5. Technical challenges: The implementation of a single currency would require significant technical and logistical challenges, such as developing a common monetary policy and creating a central bank.
  6. Political challenges: The implementation of a single currency would also require significant political challenges, including resolving conflicts and negotiating agreements among member countries.

While there are certainly benefits to a single currency, it is important to consider the potential downsides as well. The ASEAN member countries will need to carefully evaluate these pros and cons before moving forward with any plans to implement a single currency.


"ASEAN Single Currency: A Future Prospect or A Pipe Dream?" ASEAN Briefing, 25 Apr. 2019,

Chia, Wai-Mun. "ASEAN Single Currency: Challenges and Opportunities." The Diplomat, 12 Mar. 2019,

Fernandes, Ronald. "The Pros and Cons of ASEAN Economic Integration." Forbes, 16 Mar. 2021,

"Is An ASEAN Single Currency Realistic?" The ASEAN Post, 26 Jan. 2021,

Othman, Zakaria. "ASEAN Single Currency - The Pros and Cons." RFI, 13 Aug. 2018,

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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