Manila. ASEAN has no plans to follow in its European counterpart’s footsteps by adopting a common currency, as the Southeast Asian bloc calls on its members to trade more.

Speaking to the press on Wednesday, ASEAN Secretary-General Kao Kim Hourn revealed that the idea of having a common currency had long floated around for decades. Kao, however, quickly shot down the possibility of a monetary union becoming a reality.

“[The idea of a single currency] is not new, but I don’t think so. Every member state is happy with its own currency. I think that’s where we are,” Kao told the 10th ASEAN Media Forum in Manila.

As ASEAN keeps its distance from a common currency, the group has been seeking regional economic integration through other pathways, namely removing trade barriers. Kao even proposed lifting intra-ASEAN trade to “around 35%” of the group’s commerce activities, up from the current 21%. The region's total trade amounted to $3.8 trillion in 2024, data showed.

The European Union’s euro is a notable example of a single currency. Analysts have warned that the yawning gap between the members’ economies could set some obstacles in its implementation. As a case in point, the pace of Singapore’s economic growth contrasts sharply with the least developed nations such as Cambodia and Timor-Leste.

Senior economist Lili Yan Ing had previously said that ASEAN was already on the right path by “not mimicking the EU’s single currency”. 

“Being integrated in trade and investments is the best ASEAN can achieve by not going into [such monetary] unions,” Lili warned.

Southeast Asian currencies have come under pressure against the greenback following the US-Iran war. Indonesia’s rupiah is free-falling to the psychological mark of Rp 18,000 per dollar. The surprise resignation of the country’s central bank governor Perry Warjiyo has fueled further anxiety over the exchange rate. The rupiah even closed at Rp 18,073 per dollar in the spot market on Wednesday. The Philippine peso has recently hit a record low of 61.847 pesos. Malaysia's ringgit and Singapore's dollar have been among the region's better-performing currencies.