Ministers agree to ‘clearly communicate actions’

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Ministers agree to ‘clearly communicate actions’

Finance ministers and central bank governors of Korea, China and Japan have agreed to improve communication before making major policy decisions and expand cooperation in finance, in an effort to react quickly to uncertainties in the global economy.

The six ministers and governors were part of a meeting in Lima, Peru, on Thursday, on the sidelines of the annual meeting of the World Bank Group and International Monetary Fund.

Attendees were Finance Minister Choi Kyung-hwan, Bank of Korea Governor Lee Ju-yeol, the Japanese Finance Minister Taro Aso, Bank of Japan Governor Haruhiko Kuroda, and Chinese Finance Minister Lau Jiwei.

“Recognizing that global growth falls short of our expectations and the challenges threatening regional financial stability, we will closely monitor developments, assess spillovers and address emerging risks as needed as well as carefully calibrate and clearly communicate our actions to foster confidence and financial stability,” the three nations’ joint message wrote.

The three countries agreed to the need for more aggressive macroeconomic policies and domestic economy restructuring, in order to make economic recovery sustainable.

To strengthen financial cooperation within the region, the three countries agreed to accelerate the implementation of Asean+3 Macroeconomic Research Office (AMRO) to officially launch as an international organization.

They also promised to further develop the Chiang Mai Initiative Multilateralization (CMIM), the currency swap arrangement that went in effect in 2010 among China, Hong Kong, Japan, Korea and the 10 Asean members, to help each other with liquidity problems.

However, the three countries were reported to have held no discussions on sensitive topics like the recently sealed Trans-Pacific Partnership and the ongoing Korea-China-Japan Free Trade Agreement negotiations.

The meeting took place in preparation for the three countries’ presidential summit, which local and Japanese media previously reported to have been scheduled for some time at the end of this month or early November, in Korea.

Korean Finance Minister Choi requested support from China and Japan for the idea of a Korea-led Northeast Asian Development Bank, saying the fund will help ease tensions in the region and help Northeast Asia take a leading position in global economic development.

President Park Geun-hye first brought up the idea of forming the multilateral fund to help North Korea and the overall development of Northeast Asia. ?World Bank President Jim Yong Kim promised Choi that he will support the fund’s establishment once the political situation improves.

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