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Taiwan's central bank governor calls for currency coordination

2012/05/04 22:24:17

Manila, May 4 (CNA) Taiwan's central bank governor called for the establishment of an official currency coordination mechanism at the annual conference of the Asian Development Bank (ADB) Friday.

Perng Fai-nan, governor of the Central Bank of the Republic of China (Taiwan), said such a mechanism would help Asian currencies reflect economic fundamentals, cut transaction costs and enhance financial stability in the region.

At the same time, Perng said Asian countries needed to be better prepared to deal with the volatility of global capital movements, which are contributing to increasingly high trading volumes in Asian currency markets.

He lauded the CMIM, or Chiang Mai Initiative Multilateralization, a US$120 billion multilateral money swap facility that took effect in March 2010, and AMRO, or ASEAN+3 Macroeconomic and Research Office, established in Singapore in April 2011, as milestones in Asian integration.

But he also said that based on the experience of the Asian financial crisis, the funds are still not sufficient to deal with a potential crisis, and he advocated integrating the AMRO and CMIM to achieve the functions of a true Asian Monetary Fund.

Meanwhile, Perng lodged a strong protest over the name of the Republic of China (Taiwan) delegation Friday.

The ADB was established in 1966, with its headquarters in Manila, and the ROC was an original founding nation. But after China joined the ADB in 1986, the country's name was unilaterally changed to Taipei, China, and has remained the same ever since.

In addition to an oral protest, Taiwan's delegation also submitted a written protest to the ADB.

(By Emerson T. Lim and Lilian Wu)