Bankers to meet on financial turmoil

By Xin Zhiming (China Daily)
Updated: 2008-12-11 07:58

Central bank governors of China, Japan and South Korea will hold regular annual meetings to discuss regional economic and financial issues, according to a joint statement of the countries yesterday ahead of the scheduled summit among their national leaders this weekend.

The statement said the mechanism is aimed to enhance dialogue among financial policymakers of these countries, with Beijing hosting the first such meeting next year.

"The new mechanism among central bankers shows that those East Asian economic powerhouses are in closer cooperation to combat the spreading of the global financial turmoil," said Sun Lijian, economist of Fudan University.

Real GDP growth in East Asia will be down to 5.3 percent next year from 7 percent this year thanks to projected weakening export growth and reduced investment and consumption, said the World Bank's six-monthly East Asia and Pacific Update report released yesterday.

The global financial crisis and economic slowdown have bitten into real economies of these countries, dimming their GDP growth prospects and, in particular, leading to a more than 30 percent drop in the South Korean won this year.

Sun said the weekend summit could discuss expansion of the $80 billion fund agreed to by the three countries and the Association of Southeast Asian Nations in May to stabilize regional currencies.