Bank of Japan governor calls for Asian effort to tame capital flows |
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Mon, 22 Jan 2007 07:57
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TOKYO (XFN-ASIA) - Bank of Japan governor Toshihiko Fukui has called for the monetary authorities in Asia to forge closer links to limit the effect of massive money flows into the region.'To increase the ability to absorb external shocks from massive capital flows, the priority seems to [be to] strengthen the function of foreign exchange and financial markets in the region as a whole,' Fukui told a symposium that brought together a number of Asian central bank chiefs to mark 10 years since the Asian financial crisis of 1997.Exchanging information will 'contribute to addressing risks and vulnerabilities in the markets,' he said.Ten years after the financial crisis, 'financial markets are much more stable and the currencies sometimes face upward rather than downward pressure,' Fukui said.'With the globalization of the world's financial markets, large capital flows will continue to have a strong impact on open economies,' he said.'It is, and will surely be, the most difficult task for any monetary authorities to maintain the stability of foreign exchange rates, the free flow of capital, and the independence of monetary policy simultaneously.'
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Bank of Japan governor reiterates that economy expanding moderately 