your queue:
Asia Must Play Greater Role In International Monetary System, Says High-Level Panel at ADB Meeting
2011-0505
Asia's rapid economic ascent and growing influence in global economic governance – particularly in the G20 – means the region must promote itself to play a greater role in correcting major gaps and weaknesses in the international monetary system (IMS), a high-level panel said here today.
“Asia must accept greater responsibility in global economic and financial affairs by playing a more proactive role in designing an effective multilateral framework that promotes global monetary and financial stability,” said ADB President Haruhiko Kuroda.
Mr. Kuroda cited the Chiang Mai Initiative Multilateralization and the creation of the ASEAN+3 Macroeconomic and Research Office as signs that the region is taking concrete steps to build a stronger regional financial architecture supporting regional and global financial stability. But he warned that deeply rooted problems in the international monetary system – such as persistent global imbalances, large and volatile capital flows, undue exchange rate pressures, and disruptions in providing sufficient global liquidity in times of market distress – must still be addressed with collective efforts if Asia is to achieve strong, sustainable and inclusive growth.
“Joint ADB-IMF-Japanese ASEAN +3 Co-chair-French G20 Presidency High-Level Panel on Reforming the International Monetary System” was held at ADB’s 44th Annual Meeting in Ha Noi, Viet Nam. The event was hosted jointly by Mr. Kuroda; French Finance Minister Christine Lagarde; Indian Finance Minister Pranab Mukherjee; Japanese Finance Minister Yoshihiko Noda; and Deputy Managing Director of the International Monetary Fund (IMF) Naoyuki Shinohara.
A prime objective of the current French G20 Presidency is to establish a collective global response to continued deficiencies in the IMS and panelists at the seminar discussed opportunities for the G20 to collaborate in strengthening existing global and regional financing arrangements.
“We need to have a more comprehensive and better organized system; a system that is more in sync with the real economy,” Ms. Lagarde said. She said the basket of currencies behind the IMF’s Special Drawing Rights must be enlarged to be more representative of the world’s multi-polar economy.
Mr. Mukherjee emphasized the need for well-regulated markets to ensure stability in the financial system. However, he also said that each country must be given flexibility to regulate capital flows according to their respective circumstances.
Mr. Noda called for deeper discussions within the G20 on the issue of reforming the IMS and on further reform of the IMF’s Special Drawing Rights.
Meanwhile, IMF’s Shinohara said the IMF has intensified its current study of the various experiences in emerging markets, especially on how they have dealt with capital flows. He said the comprehensive study is taking into account the situation of capital recipients and capital originators. “The work is still in progress in formulating a framework to help countries manage volatile capital flows,” he said.
“Asia must accept greater responsibility in global economic and financial affairs by playing a more proactive role in designing an effective multilateral framework that promotes global monetary and financial stability,” said ADB President Haruhiko Kuroda.
Mr. Kuroda cited the Chiang Mai Initiative Multilateralization and the creation of the ASEAN+3 Macroeconomic and Research Office as signs that the region is taking concrete steps to build a stronger regional financial architecture supporting regional and global financial stability. But he warned that deeply rooted problems in the international monetary system – such as persistent global imbalances, large and volatile capital flows, undue exchange rate pressures, and disruptions in providing sufficient global liquidity in times of market distress – must still be addressed with collective efforts if Asia is to achieve strong, sustainable and inclusive growth.
“Joint ADB-IMF-Japanese ASEAN +3 Co-chair-French G20 Presidency High-Level Panel on Reforming the International Monetary System” was held at ADB’s 44th Annual Meeting in Ha Noi, Viet Nam. The event was hosted jointly by Mr. Kuroda; French Finance Minister Christine Lagarde; Indian Finance Minister Pranab Mukherjee; Japanese Finance Minister Yoshihiko Noda; and Deputy Managing Director of the International Monetary Fund (IMF) Naoyuki Shinohara.
A prime objective of the current French G20 Presidency is to establish a collective global response to continued deficiencies in the IMS and panelists at the seminar discussed opportunities for the G20 to collaborate in strengthening existing global and regional financing arrangements.
“We need to have a more comprehensive and better organized system; a system that is more in sync with the real economy,” Ms. Lagarde said. She said the basket of currencies behind the IMF’s Special Drawing Rights must be enlarged to be more representative of the world’s multi-polar economy.
Mr. Mukherjee emphasized the need for well-regulated markets to ensure stability in the financial system. However, he also said that each country must be given flexibility to regulate capital flows according to their respective circumstances.
Mr. Noda called for deeper discussions within the G20 on the issue of reforming the IMS and on further reform of the IMF’s Special Drawing Rights.
Meanwhile, IMF’s Shinohara said the IMF has intensified its current study of the various experiences in emerging markets, especially on how they have dealt with capital flows. He said the comprehensive study is taking into account the situation of capital recipients and capital originators. “The work is still in progress in formulating a framework to help countries manage volatile capital flows,” he said.
Source: http://www.adb.org
Other news ::.