MANILA, Philippines - Asia's transition to a single currency is inevitable as the global financial market searches for international reserve currencies other than the United States dollar, economists said Thursday at the Asian Development Bank's (ADB) 45th annual board of governors meeting.
"It is a matter of time, not yes or no," Iwan Azis, head of ADB's Office of Regional Economic Integration said in a media briefing.
He said since 2008, the degree of integration in Asia has been increasing, but no one can predict yet when the single currency will come about.
Meanwhile, Jeffrey Sachs, director of US-based The Earth Institute said problems in fiscal policy and competitiveness make it hard to come up with a single robust currency for the region.
He added that the world currently needs alternatives to the US dollar as an international reserve currency to maintain stability in the global financial system.
"Ideally, we would like to see three to four reserve currencies," Sachs said, citing the US dollar, euro, Chinese yuan and other Asian currencies like the Japanese yen.
"Undesirable"
Government and business leaders, however, had mixed reactions on the creation of a single Asian currency, given Europe's present economic woes.
"I believe Asian economies can continue to push closer regional cooperation and greater intetgration even without a single currency. The current approach is appropriate in pursuing regional objectives of maintaining financial stability and promoting economic development," said Amando Tetangco Jr., Bangko Sentral ng Pilipinas governor.
Another Philippine official said the lessons of the Eurozone crisis should serve as a warning to Asian economies.
"My opinion in thinking of single Asian currency is to consider results, effects and lessons of euro crisis," said Augusto Santos, deputy director general of the National Economic and Development Authority.
John Chu, chief investment officer of AIA Group Ltd., said the region may achieve a common currency if the movement of people and the distribution of products are standardized and economic development is uniform, something Asia has yet to achieve.
"It would be undersirable to force an Asian currency," Chu said.
Meanwhile, ADB chief economist Changyong Rhee said Asian nations have yet to decide on a single currency for the region.
"There is no consensus among Asian policy makers whether we need a common currency especially after what happened in Europe," he said.
In Europe, the huge sovereign debts of a number of countries, including Greece and Spain, has compelled other euro countries to scramble for measures to provide large bailout packages to these economies.