ASEAN swap plan needs $20b

ASEAN swap plan needs $20b

BANGKOK (Dow Jones): The Association of Southeast Asian
Nations (ASEAN) needs to greatly increase the scope of its
currency swap plan with its northern neighbors, China, South
Korea, and Japan, for it to work, Japan's former Vice Finance
Minister for International Affairs Eisuke Sakakibara said
Wednesday.

Speaking ahead of the Asian Development Bank's annual meeting
this weekend, Sakakibara noted that the proposed figure of $200
million for the swaps plan was too small.

"We need to have at least $20 billion," he said. "Then it will
be quite effective."

ASEAN is seeking to set up a currency swaps program with
China, South Korea, and Japan to build a pool of foreign exchange
reserves that could be used to fight off speculative attacks on
currencies in the region.

Separately, Sakakibara reiterated his support for the creation
of an Asian Monetary Fund, which would act as a lender of last
resort during economic crises in the region.