Finance Minister Hiroshi Mitsuzuka said Friday that a proposed fund to assist Asian economies in financial or currency crises should supplement the International Monetary Fund, indicating a shift in Japan's position regarding the mechanism.
At a news conference, Mitsuzuka said discussions on the establishment of the facility, tentatively dubbed the Asian Monetary Fund, were making headway. The fund proposal came up in July during the baht crisis, Mitsuzuka noted. "And through close coordination, we would like to see it created as a supplementary organ to the IMF."
He noted that the key to stability in currency and financial markets was the cooperation among entities such as the IMF, the World Bank and the Asian Development Bank, and that it was only natural that the IMF play a central role.
Deputy-minister level talks on the idea involving key Asian economies such as Japan, the United States and members of the Association of Southeast Asian Nations are to be held Tuesday and Wednesday in Manila. Mitsuzuka said these negotiations are very important, and that success would help restore stability in Asian currency markets.
Tokyo was the key proponent of the fund but has encountered opposition from nations such as the U.S. These nations feared the new fund might undermine the current system of using international organizations such as the IMF to assist in economic emergencies.