Letters and Blogs

A step toward Asian monetary fund

On May 4, China Daily reported that the government had just injected $38 billion into an Asian crisis fund, a vital step toward setting up an Asian monetary fund.

Asian economies, especially the smaller ones, will never forget the global balance of payment crisis. During the Asian financial crisis, manipulated by international financial magnates, foreign capital battered the currencies of Thailand and Indonesia. The International Monetary Foundation (IMF) offered aid with stiff conditions, making recipients accept painful pro-cyclical policies, including a cut in spending and raising interest rates, which caused more trouble for these economies.