Support accord ‘could develop into Asian IMF'
By Victor Mallet in Istanbul, Published: May 6 2005 01:05 | Last updated: May 6 2005 01:05:
The currency swap agreements in east Asia providing mutual protection from financial emergencies could develop into an Asian monetary fund, a leading Japanese proponent of regional financial integration said yesterday.

Agreed after the 1997-98 financial crisis, and known as the Chiang Mai Initiative, the $39bn (€30bn, £20.4bn) in bilateral support arrangements between Japan, China, South Korea and 10 south-east Asian countries are expected to double in value and may be transformed into a multilateral system, Asian finance ministers said on Wednesday.

“The Chiang Mai Initiative has the potential to become an Asian monetary fund,” said Masahiro Kawai, a former Japanese finance ministry official and World Bank economist who will head a new regional financial integration office at the Asian Development Bank (ADB).

He was speaking in Istanbul, where the ADB is holding its annual meeting. Mr Kawai is an adviser to Haruhiko Kuroda, the ADB president who has made it his mission to promote financial co-operation in Asia.

The suggestion of an Asian monetary fund is controversial because it was proposed by Japan and others after the Asian crisis but rejected by the US and the International Monetary Fund. Critics argued that a regional fund would duplicate the IMF's work and might be unwilling to impose harsh financial conditions on Asian governments. Mr Kawai said the idea of a secretariat for the Chiang Mai Initiative a first step in the creation of a fund was “clearly on the table”, although there would inevitably be arguments about where it should be based.

East Asian governments have already begun loosening their adherence to IMF “conditionality”. The finance ministers agreed this week to double the proportion of emergency funds that could be disbursed without the beneficiary implementing an IMF programme to 20 per cent from 10 per cent.

Mr Kawai acknowledged that the Chiang Mai states did not yet have the bureaucratic structure to conduct the sort of detailed economic surveillance done by the IMF. “Full IMF delinkage would not be desirable at this point,” he said.

The chairman of Stock Market Organization’s Board of Directors rejected reports that the much-publicized petroleum exchange would become a reality in the near future, stressing that the issue is not a priority for the Stock Market Council.

Hossein Talebi, the National Iranian Oil Company’s director for information technology affairs, told Fars news agency that the project would enter the executive phase soon.

The official further said that petrochemicals, crude oil and oil and gas products will be traded at the petroleum exchange.

TEHRAN (PIN) — Iran’s Bourse Council has given the go ahead to establishment of the first-ever oil, gas and petrochemical stock market in the Islamic Republic, a deputy minister of oil said.
Mohammad Javad Assemipur told PIN the national council has promised to lay the foundation for the oil, gas and petrochemical bourse.
Tehran Times

I wonder what excuse they'll use to attack Iran, or will they even bother trying to provide an excuse this time.

I wonder what excuse they'll use to attack Iran, or will they even bother trying to provide an excuse this time.

Get ready for the Dinar people and the end of petrodollar recycling!

... or prepare for more imperialistic military adventures from the good ol' USA.

As for customers, I would imagine China & Europe will be major clients. Best of luck to it.