Sunday, August 05, 2007

Asia faces challenges from capital flows

Asia's emerging economies are struggling to find ways of coping with adverse market volatility arising from fast flows of global capital, Bank of Thailand Governor Tarisa Watanagase said on Saturday.

Senior officials from South East Asian central banks meeting in Bangkok, hoped to seek the views of the International Monetary Fund on how to adjust policies in response to recent volatile capital flows experienced in the region, Tarisa said in a speech to regional central bankers.

"The increased volatility has posed challenges to central banks in maintaining monetary and financial stability," the governor said.