Asian economic system resilient to potential financial turmoil, says Asian Development Bank president

Asian Development Bank President-elect Masatsugu Asakawa speaks during an interview with Reuters in Tokyo on November 29, 2019. – Reuters pic

Tuesday, September 27, 2022 5:13 PM MYT

KUALA LUMPUR, September 27 — Asia’s economic system as a whole is resilient to any financial crisis, the Asian Development Bank (ADB) has said.

Its Chairman Masatsugu Asakawa said interest rate hikes by the Federal Reserve (Fed) had boosted the US dollar as the movement of capital flows became volatile and rapid.

Therefore, he believes that the current steep depreciation of emerging Asian currencies will continue for some time, as aggressive rate hikes by the Fed and tightening in advanced economies will put additional pressure on capital outflows.

“Especially compared to the Asian financial crisis of 1997-98, the current position in this region has improved and the foreign exchange reserve has been sufficiently activated,” he told a press conference on the sidelines. of the 55th Annual Meeting of the AfDB today.

“Thus, it is always a good thing to be vigilant during this volatile capital movement and also try to strengthen international capital cooperation efforts, including ASEAN+3,” he added. .

Asean+3 consists of 10 member countries of Asean, including China, Japan and South Korea, which started in 1997. — Bernama