The chairman of the Risui Research Institute and the former president of the Asian Development Bank, Makihiko Wuyan: countries must strengthen regional cooperation to respond to risks to avoid crisis and occur again

21st Century Business Herald reporter Hu Huiyin reported

"I think all countries hope to strengthen regional cooperation. Because in the crisis, people hope to share results and exchange results, such as the" Chiang Mai Agreement "we see." The former president of the bank said at the international seminar on the 25th anniversary of the Asian financial crisis on August 19.

It has passed 25 years since the Asian financial crisis, and at present, risk factors in the world are increasing. At the meeting, the middle -tail Wuyan reviewed the cause of the Asian financial crisis, and the continued development of Asian countries to overcome the Asian financial crisis.

Mid -tailed Wuyan said that there are many reasons for the Asian financial crisis that year, such as the open capital market and capital transactions in Asian countries. Many Asian countries have opened short -term capital into channels such as financial investment, causing a large number of capital to flood into Thailand, Indonesia, South Korea, and Malaysia. Waiting for the country. Among them, the important background of the Asian financial crisis is to focus on the exchange rate system. He said, "The currencies of many countries are staring at the US dollar steadily, which produces the exchange rate system that actually focuses on the US dollar. Therefore, after a large amount of capital influx, it has led to a very serious exchange rate risk. There is no risk. "

Secondly, the important reasons for the crisis are also the problem of borrowing mismatch of these Asian countries.

Zhongwei Wuyan said that these Asian countries borrowed US dollars and then lent to domestic investors to generate currency mismatch. This loan method often borrows short debt and bonds, so investment funds often enter some poor returns, including the real estate industry. Soon after, these countries had an overheating problem, and the frequent project deficits supported by foreign debt were getting higher and higher. Based on this, Thailand had to give up the exchange rate system linked to the US dollar and adopted a free floating system. The same situation spread to Indonesia, South Korea and other Asian countries. Therefore, at that time, many countries had a large amount of capital outflows. The currency crisis gradually evolved into a bank crisis, and a large number of enterprises and investors were affected.

In addition to reviewing the Asian financial crisis, Zhongwei Wuyan also reflected the practice of international organizations at the time when responding to the crisis. For example, the International Monetary Fund (IMF) required these Asian countries to tighten monetary policy, but this approach may cause the economy to further confuse. For example, the middle -tail Wuyan said that the South Korean economic performance was strong at the time, and the crisis did not come from loose fiscal policies and monetary policies. He further stated that countries should carry out financial reform, such as the exchange rate should be more free, establish an early warning system, and at the same time strengthen the financial sector and establish a sound financial regulations.

What changes need to be made after the Asian financial crisis? Zhongwei Wuyan believes that it is necessary to be included in the global governance system into the global governance system. In addition, the regulations and international standards of the financial sector need to have some changes and reforms. He particularly emphasized that countries should strengthen regional cooperation and continue to strengthen the construction of the international financial system.

Although many countries have made many efforts to avoid crises after the Asian financial crisis, Mid -tailed Wuyan believes that the risk factors of the world are still increasing. The problem of excessive proportion in GDP. In this regard, he called on countries around the world to prepare for the potential crisis to avoid re -emerging crisis.

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