##ncies into a single regional currency. such initiatives are being pursued in latin america, africa and the middle east. in asean, a taskforce has be set up to look into the issue. clearly, with growing regional economic integration, not just within asean but also among the asean + 3 countres, enhanced regional financial cooperation would play a beneficial and complementary role. regional policy makers recognise that a single currency is a long - term option for the region. an important pre - condition for a single currency would be a significant degree of economic and financial convergence and integration. it would also require greater labour and capital mobility in the region. while the single currency may be not in the region's immediate future, this does not preclude greater cooperation on exchange rate issues and other forms of financial co - operation among regional economies. there is indeed potential to benefit from enhanced financial cooperation and for the creation of mechanisms that would enable the region to better cope with periods of highly unstable financial market conditions. institutional infrastructure such as regional surveillance and financial support mechanisms achieved under the chiang mai initiative can be further enhanced over time to provide temporary liquidity support to regional countries and prevent the type of violent exchange rate movements observed during the asian financial crisis. such institutional arrangements need to be reinforced with greater regional economic integration. in addition, to encourage part of the financial flows from the region to be recycled into investments in the capital market, efforts have been taken to further develop the capital market, particularly in the area of securitization, credit guarantee and market infrastructure. the regional economies recognise the importance of developing the capital market. thus, coordinated efforts through various initiatives have been undertaken to remove impediments to the development of these markets. confronted by the current climate of uncertainty in the global economy and financial markets, our resolve has most certainly been to maintain constant vigilance towards all sources of risks and vulnerabilities and to preserve economic and financial stability. efforts are also on going in financial and corporate sector reforms to strengthen our financial and economic foundations. the progress achieved thus far has strengthened the resilience of regional economies and financial systems. at the same time, measures have also been put in place by many of the regional economies to manage the risks from both external and internal sources. from the malaysian perspective as a small emerging market economy, the long - term solution is to enhance resilience and increase the tolerance level to absorb volatility and to be in a position to withstand external shocks and any slowdown in

‘ one belt one road ’ initiative that is adding to previous initiatives such as the establishment of the asian infrastructure investment bank and the new development bank. the consequence of china ’ s economic rise is the increasing use of its currency. this was further spurred by china ’ s gradual internationalisation of the renminbi in 2009. renminbi hubs have been established around the world, including in malaysia, and a global payment, clearing and settlement platform for renminbi, namely the cross - border interbank payment system ( cips ) is in the development stage. six years on, an estimated one - third of all chinese trade is settled in renminbi, making it the third most traded currency in the world after the euro and the dollar. it is also now ranked 5 th as the world fx currency in trading value and 6th as a payments currency in value. given the steady internationalisation of the currency, the renminbi is expected to be on a gradual path to become a fully convertible currency, along with the emergence and expansion of major chinese cities such as shanghai, as formidable truly global financial centres. the ongoing accessibility to the domestic financial markets, if further accelerated, will set forth a virtuous 3 / 5 bis central bankers'speeches cycle of development that will facilitate greater use of the currency. thus, should the internationalisation of the renminbi continue as expected, it will further cement its role as the influential currency for trade and investment, and some say, a path towards becoming one of the more significant global reserve currencies. what are the implications for asia? using an analogy is apt in describing the implications for asia. japan, a country experiencing approximately 1, 500 earthquakes a year, is finding innovative ways to support its structures. instead of using steel and concrete, traditional materials to strengthen its structure, a japanese textile firm is experimenting with carbon fibre rope - curtains, which are tough and pliant to earthquake - proof a building. this will allow the building to realign itself when it is quivering during an earthquake. this company, kengo kuma and associates, realising the potential risks from stress, also planted anchors around the structure to prevent the ground from rising up when the carbon - fibre curtain is activated. likewise, asia should ensure it has its own ‘ carbon - fibre curtain ’ of policy adaptability and flexibility to manage destabilising movements in the financial system. despite the inevitable diversification of de facto reserve currencies, the dollar will remain