ASEAN to Establish A Financial Crisis Monitoring Body

ASEAN finance ministers have agreed to establish a new finance and macro economy monitoring body in the region. ASEAN country members, supported by Japan, China and South Korea, have formed the ASEAN Plus Three Macroeconomic Research Office (AMRO).

AMRO is projected to be the first line of defense for member countries against financial crises and a first step in independence from the International Monetary Fund (IMF). “They will operate on May 1st and be based in Singapore,” said the Head of Fiscal Policy at the Finance Ministry, Bambang P.S. Brodjonegoro, during the 15th ASEAN Finance Ministers Meeting in Nusa Dua, Bali, yesterday.

According to Bambang, AMRO is a monitoring body that will watch over the development of international finance, especially in ASEAN region. The organization has been tasked to provide early warning to countries needing additional foreign exchange reserve.

AMRO has collected US$ 120 billion for the initial phase of the funding. In the future, the funds will keep on increasing. AMRO is expected to be the mechanism for maintaining economic stability in South East Asia. “We hope that AMRO will become stronger,” said Bambang. China, Japan and South Korea will take turns leading the organisation.