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China to continue efforts on regional forex reserve pooling scheme

(Xinhua)
Updated: 2008-10-24 13:57

China welcomed the scheme to establish a foreign exchange reserve pooling arrangement under the framework of the Association of Southeast Asian Nations (ASEAN), as well as China, Japan and Republic of Korea, Foreign Ministry spokesman Qin Gang said on Thursday.

"The ASEAN members plus China, Japan and Republic of Korea, had unanimously agreed on the arrangement," he said at a regular press conference.

"A foreign exchange reserve pooling mechanism can release help for hardship needs, and assist countries deal better with possible financial turmoil," Qin said, adding the benefits could be brought if the mechanism was founded.

"The scheme is a form of multilateralization of the Chiang Mai Initiative," he added, expressing China would work with other parties involved to continue negotiations to found the mechanism.

The Chiang Mai Initiative, established in May 2000, is an initiative under the framework of the ASEAN members and three other countries. It aimed for creation of a network of Bilateral Swap Arrangements among these countries.

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