Thailand to propose mechanism to stabilise regional currencies

Nitya said the proposal would be presented at a session of Asean plus 3; the ten member countries plus China, Japan and South Korea.

He was speaking during the 40th Asean ministerial meeting in Manila, Philippines.

The three countries can contribute their cooperation on this issue, he said, adding Asean and the three countries have sufficient capital reserves and could come up with measures to protect volatility in regional currency in order to create confidence for investors and exporters, he said.

 The working committee set up during the Chiangmai Initiative 10 years ago which was assigned to oversee the weakening of currencies then could be given the task although the situation is now different from before, he said.

Major capital inflows into Asia plus concerns over the sluggish US economy have created the volatility in regional currencies, including the Thai baht, in the past few months.

He added Asean foreign minister have agreed to establish a special fund which will be used to reduce a wide gap among the rich and the poor in the region, the Thai minister said.

By Nantida Puangthong

The Nation