The Boao
Forum for Asia, which convened its annual conference in
southernmost China's Hainan Province this past weekend, held a
panel meeting on Asian financial cooperation Sunday afternoon. The
topics of a unified Asian currency and averting financial crises
were focuses of the meeting.
A unified Asian currency – the "Asian dollar" – was the buzzword
among the delegates attending the Boao Forum for Asia's (SFA's)
panel meeting on regional financial cooperation Sunday afternoon.
Participants agreed that although there is a long way to go, it
should be regarded as a long-term pursuit. Because a single
currency is the result of high economic integration, financial
cooperation is urgently needed.
Delegates at the meeting also concurred that there is a strong
need for financial crisis resistance, recalling the damage done by
the 1997 Asian crisis.
"In the context of a globalized economy, without a
well-designed, mature international financial architecture and
global governance to provide safeguards to the smooth functioning
of the participating economies, it is just impossible to rule out
recurrence of such a financial disaster," said Jin Liqun, vice
governor of the Asian Development Bank. "The main issues are how to
strengthen the existing coordination mechanisms and forums, and
move up to a higher level of cooperation in this area."
In recent years, Asian countries have been fundamentally
restructuring their financial sectors, providing a good foundation
for regional cooperation in money and finance.
The Chiang Mai Initiative, launched in May 2002, has resulted in
13 bilateral currency swaps, totaling about US$33 billion. In June
2003, 11 central banks in Asia jointly launched the Asia Bond
Fund.
Wu Xiaoling, vice governor of the People's Bank of China, the
nation's central bank, emphasized the urgent need for financial
cooperation in East Asia, the most dynamic subregion in Asia.
"Regional economic integration calls for strengthening East
Asian financial cooperation in order to maintain financial
stability in the region." Wu said that China fully supports and
actively participates in East Asian financial cooperation, and will
also strengthen cooperation with ASEAN, Japan and South Korea.
"To maintain regional financial stability, China will maintain
the basic stability of the RMB exchange rate," she added.
Last year, China, South Korea and Japan decided to establish a
Northeast Asia Cooperation Bank to enhance cooperation.
Xu Zhimin, president of the Hong Kong General Chamber of
International Investment, suggested that regional financial
cooperation should be expanded into new realms. He said that in
order to cope with the possibility of financial crisis, the
currency swap system should be diversified and its quota
increased.
Furthermore, Asian countries should strengthen mutual
understanding and eliminate differences, gradually coordinating and
developing a unified economic policy, Xu said.
(China.org.cn by staff reporter Tang Fuchun April 26, 2004)