KUALA LUMPUR, Malaysia (The Adobo Chronicles) – Leaders of Southeast Asia will formally sign a charter on Sunday to announce the creation of the ASEAN Economic Community (AEC), which would be similar to the European Union (EU).

The new entity will become formal on December 31 and will include member countries from the Philippines, Malaysia, Indonesia, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam.

The declaration will be made at the 27th ASEAN Summit this weekend in Kuala Lumpur.

The idea of AEC is patterned after EU where member countries have a single common currency (the Euro) and entry visas (Schengen visas) to one country are valid for travel in the rest of the EU member countries.

News like this travels fast in the Philippines and already, it has fueled speculation that the Philippine peso will ultimately be designated as the common currency for AEC.

This has prompted many Filipinos to hoard their pesos in the hope that it will escalate in value once it becomes the AEC’s common currency.

The Central Bank of the Philippines is reporting what appears to be a diminishing circulation of the Philippine peso.  Retailers have also noticed a sudden decline in purchases of goods and services, presumably because Filipinos are holding on to their currency.

This is despite the announcement from ASEAN and the Philippine Department of Foreign Affairs that having a single common currency is not part of the plan of the new AEC. At least, not yet.

But, Filipinos always want to err on the safe side.

Filipinos already enjoy a visa-free status to most of the ASEAN countries.