Wen Jiabao: Proposes Regional Foreign Reserve Pool

Premier Wen Jiabao pushes for the establishment of a regional foreign reserve pool against financial emergencies.                                                Cnsphoto

    Chinese Premier Wen Jiabao proposed to set up a regional foreign reserve pool by the end of the year, on October 24, 2009 during the 12th Association of Southeast Asian Nations (ASEAN) Plus China, Japan and the ROK (10+3) Summit.

    Earlier this year, the leaders endorsed a plan to set up a regional foreign reserve pool of US $120 billion. Japan and China will each contribute US $38.4 billion, 64 percent of the total, and the ROK will contribute another US $19.2 billion, or 16 percent. The ASEAN members will contribute the remaining 20 percent of the total.

    The regional foreign reserve pool will be used in emergencies and is expected to expand the capacity of Asian countries to tackle any financial crisis, as well as contribute substantially to the economic stability of the region. With such a reserve pool in place, timely financial assistance can be offered to any crisis-stricken economy to prevent further collapse.