But it involves nothing more than the exchange of information, says Gabriel Singson, governor of the Central Bank of the Philippines. Last month, Thailand did get loans from Japan and other countries, backed by the International Monetary Fund. Although it was initiated by the IMF, there was a strong sentiment among all central bankers that there should be a rescue package, says Hong Kong Financial Secretary Donald Tsang Yam-kuen. Under a regional repurchase arrangement, central banks can borrow dollars from each other, but must provide collateral in the form of U.S. government securities. An agreement among Indonesia, Malaysia, the Philippines, Singapore and Thailand is in place.
Bilateral pacts are also in effect.
Last year, Hong Kong and Singapore signed an agreement with Tokyo to intervene on Japan s behalf when the offshore dollar-yen exchange becomes too volatile. Anything beyond these require political will. Former Reserve Bank of Australia governor Bernie Fraser suggested in 1996 that Emeap could evolve into an Asian equivalent of the Bank of International Settlements within three to five years. An Asian BIS could work better for the region because it would operate in the same time zone. And transactions costs could be lower.