ASEAN banks consider 'various options'

ASEAN banks consider 'various options'

KUALA LUMPUR (AFP): ASEAN central banks are considering "various options" to supplement economic adjustment programs arranged by the International Monetary Fund (IMF), the Malaysian central bank said yesterday.

Bank Negara Malaysia said the new forum planned to meet regularly to discuss "regional economic and financial developments in the global context" as part of their closer cooperation.

The statement followed an inaugural meeting of deputy governors from six central banks and monetary authorities.

During the two-day meeting which ended here Wednesday, "the forum discussed the framework for assessing economic and financial developments in the region with a view to strengthen monetary and financial cooperation and to identify potential risks and policy options," the statement said.

"The forum considered various options for establishing financial arrangements to supplement IMF adjustment programs and the relationship of such arrangements with other regional financing initiatives currently under discussion," it added.

Among the six members of the Association of Southeast Asian Nations taking part in the meeting, Indonesia and Thailand have recently concluded financial rescue packages with the IMF.

Other ASEAN central banks participating in the forum are Brunei, Malaysia, the Philippines and Singapore.

Bank Negara said the IMF director of the regional office for Asia and the Pacific was also present at the two-day meeting.

The Malaysian central bank said the new forum formalized the long history of informal consultations and cooperation between ASEAN central banks.

"Recent developments in financial markets pointed to a need for a more formal and multilateral policy dialogue among ASEAN central banks and monetary authorities to discus common policy issues and concerns and to promote policies that ensure price stability, sound financial systems and long-term growth in the region," the statement said.

"Members will share experiences which will help anticipate economic and financial risks and exchange technical assistance and policy advice where appropriate on possible solutions to economic and financial issues.

"The ASEAN central bank forum will also discuss various options to foster a common ASEAN position in its relations with other international and regional institutions," the statement said.

Bank Negara added that deputies would report to central bank governors and "may highlight relevant issues to the select committee of ASEAN central bank and finance officials, which is responsible for discussing issues that require the attention of the ASEAN finance ministers."

With the exception of Brunei, the countries represented in the new forum are also members of a wider group of central banks which includes Australia, China, Hong Kong, Japan, South Korea and New Zealand.

Known as the Executive Meeting of East Asia and Pacific (EMEAP) central banks, the 11-member group held its first meeting of central bank governors in Tokyo last year. A second meeting was held in Shanghai in July this year.