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Taiwan calls for regional cooperation in annual ADB meeting

Taiwan calls for regional cooperation in annual ADB meeting

Taipei, May 5 (CNA) Taiwan's central bank governor, Perng Fai-nan, said Tuesday in the Asian Development Bank's (ADB) annual meeting currently taking place in Bali, Indonesia, that strengthening regional cooperation is one of the most important actions that can be taken to address the global economic crisis.
Perng made the call in his address to the 42nd annual meeting of the Manila-headquartered bank, an international development financing institution whose mission is to help its developing member countries reduce poverty and improve the quality of life for their people.
According to a copy of Perng's speech released in Taipei, he suggested Asian countries set up a"formal regional exchange rate coordination mechanism" to maintain the stability of Asian currencies, after the U.S. sub-prime mortgage meltdown triggered a financial crisis worldwide.
The volatility of the U.S. dollar has exerted enormous pressure on regional financial stability, Perng said. While the international community faces the most severe economic downturn since the Great Depression in the 1930s, the ADB has forecast the economy of the Asia Pacific, excluding Japan, will only grow by 3.4 percent in 2009, marking a significant drop from the 6.3 percent of 2008, Perng said.
To help economically-challenged countries tide over the crisis, a larger portion of allocable net income could be transferred to the Asian Development Fund and the Technical Assistance Special Fund, he suggested.
Speaking of the Asian Currency Note Programme the ADB launched in 2006 to develop Asia's bond markets, Perng called for more countries to join the program, under which the ADB can issue Asian currency bonds with maturities of one year and above to a total of US$10 billion anytime within the 30-year period starting from 2006.
Perng said Taiwan -- one of a few countries that have joined the platform -- believes involving more countries in this Programme would further promote the Asian bond market's development. Besides, "as governments around the region aggressively expand public expenditure to stimulate demand, the resulting borrowing needs would broaden the scale of domestic bond markets," Perng said.
"Moreover, if such bond issues can be denominated in a basket of Asian currencies, they will also contribute to regional financial integration," said Perng.
At the end of his speech, Perng reminded members that the Republic of China is an ADB founding member which has fully carried out its membership responsibilities, protesting against the organization's unilateral alteration of its membership designation into "Taipei, China" under China's demand.
The ADB is now owned and financed by its 67 members, of which 48 are from the region and 19 are from other parts of the globe.
(By Elizabeth Hsu)




Updated : 2021-05-12 17:04 GMT+08:00