BOK chief consults with his China, Japan counterparts

Bank of Korea Governor Rhee Chang-yong discussed economic risks and regional financial cooperation at the 22nd Trilateral Finance Ministers and Central Bank Governors' Meeting held virtually on Thursday.

Bank of Korea Governor Rhee Chang-yong [BOK]

Bank of Korea Governor Rhee Chang-yong discussed economic risks and regional financial cooperation at the 22nd Trilateral Finance Ministers and Central Bank Governors’ Meeting held virtually on Thursday.

Rhee, Finance Minister Choo Kyung-ho and their counterparts in China and Japan took part in the meeting held under the chairmanship of H.E. Liu Kun, Finance Minister of China.

“We exchanged views on the recent global and regional economic developments, and policy efforts to support the economic recovery,” read the joint message. “We should remain vigilant as the economic recovery is subjected to increasing uncertainties and risks, such as sharper-than-expected monetary policy normalization in some major advanced economies, continuing supply chain disruptions, and inflation pressures aggravated by current Russia-Ukraine conflict.”

It continued, “Against this backdrop, we are committed to continuously using supportive policy tools to maintain recovery while preserving monetary and financial stability and long-term fiscal sustainability.”

The leaders also vowed to enhance communication and coordination and collaborate with ASEAN (Association of Southeast Asian Nations) countries in the ASEAN+3 Finance Process to make continued progress on the 2030 Agenda for Sustainable Development to achieve stronger, greener and more balanced global development.

The ASEAN+3 Finance Process was established in 1999 to prevent or mitigate future crises, with most initiatives focusing on enhancing regional economic and financial stability. The three added countries to ASEAN are Korea, China and Japan.

Enhancing the CMIM (Chiang Mai Initiative Multilateralization) was also highlighted at the meeting.

The CMIM is a multilateral currency swap arrangement for liquidity support among ASEAN+3 members.

“We acknowledge the importance of enhancing CMIM’s operational readiness at current stage,” read the message. "We welcome the adoption of a new CMIM reference rate reflecting global financial market conventions and commend members’ effort in reviewing the CMIM margin structure."

BY JIN MIN-JI [jin.minji@joongang.co.kr]