In recent years, economists and financial experts have increasingly been talking about the idea of creating a single Asian currency. It is assumed that it will become an analogue of the euro. Interest in the topic fuels the instability of the euro-dollar pair. The Asian Development Bank has already decided to put into circulation the "Asian currency unit", or else ACU.
Stability indicator
However, no matter what the Asian currency is called, the main thing is that it ensures the stability of the economy. It is expected that it will reflect the quotes of monetary units of 30 countries in the region and will be used by some indicator of fluctuations of various regional currencies in relation to the Asian dollar, as well as the American dollar, euro and several other convertible currency units. How successful will be the Asian currency, whose name is ACU, time will tell. In the meantime, the global financial machine can not boast of stability. Financial crises excite one or the other part of the world, causing a chain reaction in a number of other countries and regions. Who knows, maybe the Asian currency really able to bring the market to some kind of balance and prevent the global financial collapse. Wait and see!
It is too early?
The Asian currency has a number of opponents. Most of them note that the American dollar in the world is in demand due to the developed economy of the United States. They justify their negative opinion by the fact that today Asian markets are in much worse shape than American ones, and their temporary economic successes are explained only by export. In addition, the US dollar (Asian dollar) runs freely in all Asian countries, so there is no particular need to exchange it for local currency. All purchases can be made with the help of American money. Thus, it turns out that the Asian currency is likely to be no more stable than, for example, the same won or Chinese yuan. And that means there will be no sense in it. A number of economic experts are inclined to believe that if Asian countries need a single currency so much, then let them switch to the United States dollar. By the way, the past 2013 was not successful for the Asian region. According to financial analysts, the Asian currency index has lost more than 2%. This, by the way, is the most significant decline since 2008. However, this has its own logical explanation. When the US Federal Reserve only started talking about the possibility of reducing incentives, a large-scale liquidation of emerging economies began on the market, which weakened currencies. The Indonesian rupee alone failed by 20%.
There are prospects
However, experts believe that the incentive reduction factor will not play such a significant role anymore, and all investors' attention will focus on promising Asian economies. And today they are perhaps the most promising in the world. Therefore, the current 2014 may be the golden time for Asian currencies. In any case, there are all prerequisites for this.