ID :
19296
Sat, 09/13/2008 - 10:43
Auther :
Shortlink :
https://oananews.org//node/19296
The shortlink copeid
ADB's Kuroda denies chance of another regional currency crisis
TOKYO, Sept 13 (Kyodo) - Asian Development Bank President Haruhiko Kuroda on Friday denied the possibility that a critical situation akin to the 1997-1998 currency crisis in the region will occur in the near future, despite the recent falls of the South
Korean won and other Asian emerging currencies against the U.S. dollar.
''I don't think (South) Korea or any East Asian economy would face a kind of
currency crisis like the one they faced in 1997 and 1998,'' Kuroda said in a
Tokyo symposium. ''I do not have so much concern about this kind of financial
crisis possibility.''
Kuroda noted that the currencies of other emerging economies in Latin America
as well as Central and Eastern Europe have depreciated against the dollar,
showing ''a general recovery of the U.S. dollar against many currencies.''
Unlike a decade ago, almost all Asian economies now have ''a large current
account surplus and substantially smaller short-term external debt,'' he said.
''They have accumulated huge amount of foreign exchange reserves, including
South Korea, and their banking sector has been strengthened tremendously
compared with their financial institutions and systems 10 years ago,'' Kuroda
said.
On the South Korean won, the ADB chief said it had substantially appreciated
against the dollar over the last couple of years and what is happening now
''may be a kind of natural correction.''
Kuroda stressed that the number one challenge for many Asian economies is
lingering inflationary pressure. The inflation rate in the region is expected
to rise to about 7 percent this year from 4.3 percent in 2007, before easing
somewhat in 2009, he said.
In countries such as Vietnam and Pakistan, inflation is still accelerating.
Many of them are seeing double-digit price hikes due to surging global food and
fuel prices, and prolonged monetary easing, the bank president said.
Kuroda said he expects inflation in those Asian economies will start to peak
out and decelerate in the coming months as they are now prioritizing their
fight against inflation over sustaining growth but that inflation will still
exceed appropriate levels.
The ADB leader, however, brushed off concern about the overall economic outlook
for Asian emerging nations, saying their expansion will remain robust. He
forecast that developing Asian economies will post growth of about 7.5 percent
in 2008 and 2009.
Korean won and other Asian emerging currencies against the U.S. dollar.
''I don't think (South) Korea or any East Asian economy would face a kind of
currency crisis like the one they faced in 1997 and 1998,'' Kuroda said in a
Tokyo symposium. ''I do not have so much concern about this kind of financial
crisis possibility.''
Kuroda noted that the currencies of other emerging economies in Latin America
as well as Central and Eastern Europe have depreciated against the dollar,
showing ''a general recovery of the U.S. dollar against many currencies.''
Unlike a decade ago, almost all Asian economies now have ''a large current
account surplus and substantially smaller short-term external debt,'' he said.
''They have accumulated huge amount of foreign exchange reserves, including
South Korea, and their banking sector has been strengthened tremendously
compared with their financial institutions and systems 10 years ago,'' Kuroda
said.
On the South Korean won, the ADB chief said it had substantially appreciated
against the dollar over the last couple of years and what is happening now
''may be a kind of natural correction.''
Kuroda stressed that the number one challenge for many Asian economies is
lingering inflationary pressure. The inflation rate in the region is expected
to rise to about 7 percent this year from 4.3 percent in 2007, before easing
somewhat in 2009, he said.
In countries such as Vietnam and Pakistan, inflation is still accelerating.
Many of them are seeing double-digit price hikes due to surging global food and
fuel prices, and prolonged monetary easing, the bank president said.
Kuroda said he expects inflation in those Asian economies will start to peak
out and decelerate in the coming months as they are now prioritizing their
fight against inflation over sustaining growth but that inflation will still
exceed appropriate levels.
The ADB leader, however, brushed off concern about the overall economic outlook
for Asian emerging nations, saying their expansion will remain robust. He
forecast that developing Asian economies will post growth of about 7.5 percent
in 2008 and 2009.
