& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Asian currencies need to choose halfway house

Experts say on sidelines of G7
FUKUOKA. Japan. July 9: Asia's currencies should live in a halfway house between a free float and an absolute fix. regional experts said here on the sidelines of a Group of Seven meeting, reports AFP.
The best prescription is to let Aslan exchange rates float around an anchor made up of a basket of major world currencies. they said, countering the official US Treasury position.
The proposal is included in a list of "policy recommendation for preventing another capital account crisis" released by the Asian Policy Forum during the G7 finance ministers' weekend meeting in Fukuoka. Japan.
The forum, which groups 17 research Institutes under the ADB (Aslan Development Bank) Institute, Issued the report three years after the outbreak on July 2, 1997, of the Aslan financial crisis.
It confirmed the need for emerging economies to prepare themselves for external shocks rather (han wait for the slow process of reform of the inter-
national financial system.
The two extreme exchange regimes are not appropriate... for Aslan economies." said the report, published by the Tokyobased ADB Institute.
Instead, it said, "emerging Asian economics with open capital accounts can adopt a managed float exchange rate policy"', which would be the best way to maintain international competitiveness while avoiding sharp fluctuations in exchange rates caused by capital flows.
The financial crisis, argues the forum, was mostly due to a flight of capital equivalent to 11 per cent of the cross domestic product (GDP) of the affected countries.
That money had been attracted to the region by an exchange rate stability supposedly guaranteed by the more-or-less rigid pegs between regional currencies and the dollar.
That is why an "exchange rate compatible with competitiveness can be based on an appropriately trade-weighted currency basket rather than a sin-
gle currency." the forum's report said.
“The currencies in the basket should include major currencies, such as the US dollar, the ven and the euro, as well as other currencies representing major trading partners of the economy concerned." it said.
Another key recommendation in the report s package is for the creation of a regional financial arrangement (RFA) that would provide a lender of last resort facility as well, together with the implementation of an effective surveillance system over Aslan economies."’
"A new structure of conditionality should also be explored. In collaboration with the IMF. that focuses specifically on problems related to the characteristics associated with capital account crises," it added.
But the plan risks getting a cool reception in Washington, which was strongly opposed the Japan's Asian Monetary Fund proposal in 1997.