KUALA LUMPUR, Sept 27 — The Asian economic system, as a whole, is resilient against any financial turmoil, said the Asian Development Bank (ADB).
Its president Masatsugu Asakawa said the Federal Reserve (Fed) interest hikes have boosted the US dollar as the movement of capital flows becomes volatile and fast.
Hence, he believes that the current sharp depreciation in Asian emerging currencies will continue for some time as the aggressive rate hike by the Fed and tightening in advanced economies will put further pressure on capital outflows
“Especially when compared to the Asian Financial Crisis in 1997-1998, the current position in this region has improved and the foreign reserve has been activated sufficiently,” he said during a press conference in conjunction with ADB’s 55th annual meeting today.
“So, it is always a good thing to be vigilant during this volatile capital movement and also try to enhance capital international cooperation efforts including the Asean +3,” he added.
Asean +3 consists of 10 Asean member countries, including China, Japan, and South Korea, which started in 1997.
— Bernama
