Reform of the Global Monetary System

2 May 2010 (4:00 pm - 5:30 pm)

The global financial crisis has challenged Asia to contribute proactively to the debate on reforming the global monetary and financial architecture. One central element of that reform agenda is the creation of a more stable, efficient and equitable global reserve system. The developing countries of Asia and the Pacific have an enormous stake in the evolution of the global reserve system. The region holds close to half of the world's total foreign exchange reserves, and is highly dependent on international trade and capital flows for its prosperity. At the seminar, globally influential financial experts will explore a wide range of policy options for building up a stronger and better reserve system. Of particular interest to the audience will be the experts' views on questions such as:

  • Does the world need major changes to its foreign reserve system? Will the change take the form of a multi-currency system in which non-dollar currencies play a bigger role? Or, will it entail a bigger role for Special Drawing Rights (SDRs)?
  • What are the short-run and long-run prospects for the yuan to become a major reserve currency? In this context, can the internationalization of the yuan serve as a catalyst?
  • Healthy growth of world trade and cross-border capital flows requires an ample supply of international liquidity. How can the global reserve system supply enough liquidity to keep pace with the fast-growing global demand for liquidity?
  • What is the role of the IMF in the reform of the global reserve system? Can regional cooperation, in particular the Chiang Mai Initiative, also help curtail Asia's huge demand for reserves? Do the global and regional approaches to reform complement each other?
  • Capital inflows and concerns about export competitiveness complicate the transition to more flexible exchange rates in Asia. Is there thus a case for capital controls as well as for heightened intra-Asian coordination on exchange rate policy and monetary policy?

PROGRAM/SPEAKERS

Barry Eichengreen
Professor of Economics and Political Science, University of California, Berkeley

Jong-Wha Lee
Chief Economist, Asian Development Bank

Naoyuki Shinohara
Deputy Managing Director, International Montetary Fund (IMF)

Moderator:
William Pesek
Asia-Pacific Columnist, Bloomberg, Tokyo

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Note: All times are in GMT+05. For inquiries, e-mail: annualmeeting@adb.org