Asia needs more cooperation to stem market volatility: Seoul

Written by: Pti
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Seoul, Feb 11 (Yonhap) Asian countries need to step upcooperation in finding ways to prevent excessive capital flowsfrom hurting their financial market stability and dampenoverall economic growth in the region, Seoul''s top economicand financial policymaker said today.

"I believe our urgent task as policymakers is to findcarefully designed policy measures to mitigate the risk ofexcessive volatility in capital flows facing many emergingeconomies without negating the benefits of capital flows,"Finance Minister Yoon Jeung-hyun told an internationalconference in Seoul.

Yoon made the remarks in his opening speech for the"Conference for Future Vision of ASEAN+3 FinancialCooperation."

It was attended by around 100 financial policymakers,central bankers, scholars and experts from Asian countries.

The meeting of the 10-member ASEAN along with SouthKorea, Japan and China was the first of its kind convened todiscuss financial cooperation and other pending issues for thepost-crisis era.

Yoon noted that Asian countries should enhance theeffectiveness of the regional financial safety net under theChiang Mai Initiative Multi-lateralization (CMIM) so that itcan properly deal with financial crisis possibly caused bycapital flight or sudden stop.

The CMIM refers to the money pool launched in March lastyear as Asian countries agreed to set aside USD 120 billion toprevent financial crises in Asia and help regional economiesrecover if crises occur.

"I believe we should expand CMIM to more than twice itscurrent volume to an amount over USD 240 billion," he said.

Praising Asian countries'' successful recovery after the latestfinancial crisis through close policy coordination, Yoon notedthat it is the time to find "new areas" in cooperation forregional prosperity.

"Now, it is time that we move toward our better futuretogether. We should initiate, knowing what we are capable of,a more future-oriented dialogue among ASEAN+3 membercountries," he said.

"At this point, our primary task is to identify new areasof financial cooperation, so that we can turn the strides andachievements of the last 10 years into the foundation forgreater regional prosperity in the next 10 years," he added.


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