Asian bankers urge Japan to act<\/p>\n
TOKYO (Reuters): Asia-Pacific central bankers, meeting in
\nTokyo yesterday, urged Japan to take decisive measures on its
\neconomy and agreed they would provide each other with yen in
\ntimes of tight liquidity.<\/p>\n
\"In view of the recent shock depreciation of the yen, they
\nnoted the various interdependencies of the economies in the
\nregion, particularly the importance of Japanese financial
\ndevelopment for other economies,\" said Takashi Anzai, an
\nexecutive director of the Bank of Japan.<\/p>\n
But the central bankers made no suggestions about possible
\nadditional steps Japan could take to boost its economy, Anzai
\ntold reporters.<\/p>\n
The Executives' Meeting of East Asia and Pacific Central Banks
\nmet against a backdrop of political uncertainty and market
\napprehensiveness in Japan.<\/p>\n
Prime Minister Ryutaro Hashimoto said on Monday he would
\nresign to take responsibility for the disastrous showing by his
\nruling Liberal Democratic Party in parliamentary elections on
\nSunday.<\/p>\n
BOJ Governor Masaru Hayami was one of those expressing concern
\nabout recent medium-term weakness of the yen, Anzai said.<\/p>\n
Separately, German central bank chief Hans Tietmeyer said he
\nwould like to see the yen rise, and urged Japan to swiftly
\nimplement its promised steps to boost the economy and bolster the
\nfinancial system.<\/p>\n
Tietmeyer told Finance Minister Hikaru Matsunaga that the
\nyen's weakness was unfavorable for Asia, a Japanese official
\nsaid.<\/p>\n
On promised measures to wind up failed banks while maintaining
\ncredit to healthy borrowers, Tietmeyer said in a speech: \"I hope
\nthere will not be any delay, because if that would be the case,
\nthis could be risky for the development of international
\nmarkets.\"<\/p>\n
U.S. Federal Reserve Chairman Alan Greenspan, meeting
\nseparately Matsunaga, agreed that a swift solution of problems in
\nthe Japanese financial sector was of great significance, a
\nFinance Ministry official said.<\/p>\n
Greenspan did not make any fiscal policy requests at the
\nmeeting, he added.<\/p>\n
The Asia-Pacific central bankers agreed to provide yen
\nliquidity through either outright purchases or under repurchase
\nagreements, using Japanese government bonds and bills as
\ncollateral.<\/p>\n
The meeting also discussed the importance of liberalizing
\ncapital accounts in an orderly and well-managed manner.<\/p>\n
Anzai said some Asian countries were forced to liberalize
\ntheir capital accounts due to the regional financial crisis, but
\nhad failed in developing an environment for such a move to
\nsucceed.<\/p>\n
\"I think some countries would like a more stable exchange rate
\nsystem rather than a free-floating system,\" he said.<\/p>\n
The meeting was attended by central bank chiefs and deputies
\nfrom Australia, China, Hong Kong, Indonesia, Japan, Malaysia, New
\nZealand, the Philippines, Singapore, South Korea and Thailand.
\nIt followed a Monday gathering of Western central bankers,
\nincluding Tietmeyer and Greenspan.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-bankers-urge-japan-to-act-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}