Asia to pool financial reserves

Asia to pool financial reserves

news.bbc.co.uk

Asian finance ministers have agreed plans to pool the region's vast financial reserves to protect their currencies from speculative attack.

The agreement, reached at a meeting in Japan, comes almost 10 years after speculators triggered an economic crisis across the region in 1997.

Its effects were felt across the region and exposed the Asian economic miracle as having very shaky foundations.

It also forced a suspension of the New York stock exchange.

Under attack from the speculators, the so-called Asian Tigers like Thailand, Malaysia and Indonesia saw their currencies collapse.

In South Korea, bad debt among large corporations fuelled a stock market crash.

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this might be a direct challenge from Asian Tigers against the IMF to curb another attack on their economies like what happend in 1997. i wonder what kind of baklash will be from IMF backers like united states? will they challenge these country's militarily? or will it be more like cold war? proxy wars and economic sanctions ?

news.bbc.co.uk
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