A symposium on financial stability analysis organized by the Southeast Asian Central Banks Research and Training Center and the Bank of International Settlements (BIS) opened yesterday in Taipei.
Speaking at the opening ceremony, central bank Governor Perng Fai-nan (
The handsome growth in financial trading volume, the increasingly complex financial tools and the globalization of large-scale financial institutions, are expected to heighten both the frequency and scale of financial risks, Perng said.
Central bank officials should conduct constant analyses of potential financial risk sources, their possible impact and financial institutions' ability to absorb unexpected losses, he said.
Without continual analyses, central banks will not be able to decide how to strengthen financial system stability, he said.
According to a central bank official, 36 officials from 12 countries plus Taiwan are attending the four-day workshop, which will run through Thursday.
In related news, Japanese Vice Finance Minister for International Affairs Naoyuki Shinohara said yesterday in Tokyo that exchange rates reflect the relative strengths of economies.
"Exchange rates basically should be decided by the market," he said at a forum.
"In terms of economic growth a weaker yen is a plus," he said. "Should the yen strengthen, however, that would push down import prices" and benefit consumers.
Shinohara also said Japan shouldn't use its foreign reserves to make speculative investments. He said he was wary of establishing a sovereign wealth fund.
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