The 10 ASEAN members, China, Japan and South Korea have agreed to pledge USD80 bn for a currency reserve fund to guard against a possible financial crisis.
China, Japan and South Korea will contribute 80 per cent (USD 64 bn)
while the ASEAN members come up for the remaining 20 per cent (USD 16
bn). The fund will facilitate currency swaps among the participating
Asian countries and is designed to help central banks to shield their
currencies from market fluctuations.
Surin Pitsuwan, ASEAN's secretary general, said in a statement that
Asia's South East economies are in a much better state than 11 years
ago, when market imbalances and speculative trading have led to a
severe financial crisis. "By many measures, the region is now in a
better position (than in 1997) to weather the current global
volatility," Surin said.
Experts see the creation of the fund as a necessary tool to control
economies and lower the dependence from international organizations
such as the World Bank or the International Monetary Fund (IMF).
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