Policy co-ordination key for financial stability

KATHMANDU, FEB 17: 

The 47th conference of South East Asian Central Banks (SEACEN) and 31st Meeting of the Governors held in South Korea concluded with an emphasis on co-ordination between fiscal and monetary policies to achieve financial stability. 

The South Korean central bank, Bank of Korea, successfully hosted the 47th Conference of the Governors of SEACEN, High-Level Seminar and 31st Meeting of the SEACEN Board of Governors on February 13-14 in Seoul. 

The governors discussed about lessons to be learnt from the global financial crisis of 2007-08 and the current 

European debt scenario and their impact on the economies worldwide due the global capital flow. 

They held open discussions on ways to minimise such risks and agreed on co-ordination between monetary and fiscal policy along with regional and international co-ordination for financial stability. They also pointed out the areas that need structural improvement in the policies for overall stability. The two-day event saw the participation of 17 member countries including Nepal. Nepal Rastra Bank’s governor Dr Yubaraj Khatiwada represented Nepal in the conference and also held a separate meeting with Bank of Korea’s governor Dr Choongsoo Kim. They discussed assistance from South Korea to Nepal and channelling remittance earned by Nepali migrant workers through formal financial institutions. 

Along with the member countries, there were representatives from International Monetary Fund (IMF), Asian Development Bank (ADB), Bank of International Settlement, Bank of Japan and Organisation for Economic Co-operation and Development (OECD). 

OECD’s deputy general secretary Pier Carlo Padoan and ADB’s vice chairman Stephen P Groff presented lectures on monetary policy, sovereign debt and financial stability. Likewise, IMF’s executive director Der Jiun Chia presented a lecture on Update on IMF Surveillance and Policies.

University of Wisconsin’s professor Dr Charles M Engel held discussions on Macroprudential Policy Under High Capital Mobility.

Source: THT