China's decision on yuan praised<\/p>\n
KUALA LUMPUR (Agencies): Senior officials from Southeast Asia
\nand China gathered here yesterday for a two-day meeting to
\ndiscuss the region's thorny economic problems.<\/p>\n
Rodolfo Severino, the newly appointed secretary-general of the
\nAssociation of Southeast Asian Nations (ASEAN), indicated that
\nthe region's economic well-being hinges on China's decision to
\nstabilize its currency, the yuan, or renminbi.<\/p>\n
Speaking to reporters yesterday, Severino said the ASEAN
\nofficials praised \"China's commitment not to devalue the yuan and
\nthe renminbi\" during the current economic crisis.<\/p>\n
Several Asian currencies have lost 40 percent or more of their
\nvalue since the Thai baht was floated in July, starting a chain
\nreaction that has caused market turmoil worldwide.<\/p>\n
Hard-hit by the currency fallout, ASEAN leaders have
\nrepeatedly requested China not to devalue its currency, which
\nwould release a flood of cheaper Chinese products and draw
\ninvestors away from the Southeast Asian economies.<\/p>\n
The regional leaders also hoped that China would stick to its
\ndecision, Severino said.<\/p>\n
Meanwhile, Severino was quoted by Star newspaper as saying
\nthat ASEAN would set up an early-warning system against future
\nfinancial crises.<\/p>\n
Officials from member states and the Manila-based Asian
\nDevelopment Bank (ADB) will set up the regional surveillance
\nmechanism as early as next month, Severino said in Kuala Lumpur.<\/p>\n
\"It will primarily gather data relating to credit and monitor
\nmacroeconomic indicators and capital movements within the region
\nand externally,\" he told the newspaper in an interview.<\/p>\n
\"The analyzed data will enable the ministries to take
\nprecautionary or corrective measures early to prevent a full-
\nblown crisis in future,\" he said.<\/p>\n
Severino said the ADB had informed him recently that it would
\nfinalize the concept and structure of the mechanism this month.<\/p>\n
ASEAN finance ministers, who met in Kuala Lumpur last
\nDecember, had urged the ADB to draw up the mechanism, following
\nthe Asian financial crisis last July.<\/p>\n
Thailand and Indonesia, together with South Korea, were forced
\nto obtain multi-billion dollar financial bail-out packages, while
\nother members like Malaysia and Singapore face slower economic
\ngrowth.<\/p>\n
ASEAN groups Brunei, Indonesia, Laos, Malaysia, Myanmar, the
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/chinas-decision-on-yuan-praised-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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