Waheed Mahmood
HANOI: Southeast Asian leaders, faced with rocketing exchange rates that risk destabilising their economies, called Thursday for more cooperation between regional central banks to calm the currency tensions. While China has kept a tight grip on the yuan, many emerging Asian economies have seen their currencies soar against the US dollar, making their exports less competitive and inviting a massive inflow of foreign capital.
The leaders of Thailand and the Philippines believe stronger coordination would give Association of Southeast Asian Nations (Asean) countries more clout as China and the United States trade blows over currency.
“It’s important for us to be more coordinated and speak with one voice, particularly with regard to things like currency,” said a spokesman for Philippine President Benigno Aquino on the sidelines of the Asean summit.
Currency tensions were set to be a hot issue at the meeting of the 10-member Association of Southeast Asian Nations, and wider 16-nation talks Saturday that also include China, Japan, South Korea, Australia, India and New Zealand.
Host nation Vietnam is something of an anomaly as its dong currency is under pressure amid spiraling inflation.
Aquino and Thailand’s Prime Minister Abhisit Vejjajiva discussed their concerns on rising exchange rates at two-way talks Wednesday, said spokesman Ricky Carandang.
“The agreement (with Abhisit) was that central bankers and finance ministers talk a little bit more frequently because right now the actions have been taken on an individual rather than a coordinated basis,” he said. “So we feel that if we talk to each other more and perhaps coordinate our efforts more then they would be more effective.” Washington has long accused China of keeping the yuan artificially low.
Beijing in turn says the Federal Reserve’s loose monetary policy risks undermining emerging economies, now grappling with an influx of hot money as investors seek higher returns amid low interest rates elsewhere. -Reuters
“It’s important for us to be more coordinated and speak with one voice, particularly with regard to things like currency,” said a spokesman for Philippine President Benigno Aquino on the sidelines of the Asean summit.
Currency tensions were set to be a hot issue at the meeting of the 10-member Association of Southeast Asian Nations, and wider 16-nation talks Saturday that also include China, Japan, South Korea, Australia, India and New Zealand.
Host nation Vietnam is something of an anomaly as its dong currency is under pressure amid spiraling inflation.
Aquino and Thailand’s Prime Minister Abhisit Vejjajiva discussed their concerns on rising exchange rates at two-way talks Wednesday, said spokesman Ricky Carandang.
“The agreement (with Abhisit) was that central bankers and finance ministers talk a little bit more frequently because right now the actions have been taken on an individual rather than a coordinated basis,” he said. “So we feel that if we talk to each other more and perhaps coordinate our efforts more then they would be more effective.” Washington has long accused China of keeping the yuan artificially low.
Beijing in turn says the Federal Reserve’s loose monetary policy risks undermining emerging economies, now grappling with an influx of hot money as investors seek higher returns amid low interest rates elsewhere. -Reuters
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