BOJ cautious about joining currency pact

BOJ cautious about joining currency pact

TOKYO (Reuter): The Bank of Japan (BOJ) is cautious about joining a pact to maintain stability of Asian currencies, a senior BOJ official said yesterday.

"For the moment, we are cautious about participating in the agreement," the official told Reuters.

Last week, five Asian central banks signed a pact to maintain stability in Asian currencies and in the region's banking system. The Mexican peso crisis rattled some Asian currencies earlier this year.

The agreements were signed by Australia, Hong Kong, Indonesia, Malaysia and Thailand.

Japan has been working with other nations through summit meetings and meetings of the Group of Seven (G-7) to cope with Mexican-style crises, the BOJ official said.

"However, it's a bit premature to enter into the Asian regional pact," he said.

The agreement came this week at a meeting of officials from 10 of the region's central banks. The five signed bilateral agreements allowing them to borrow from each other to bolster their reserves in times of crisis.

The BOJ official said the bank would like to actively cooperate within the region on such things as exchanges of information and opinions.

"If we get another invitation by the Asian nations (to join their meetings), we are willing to attend," he said.