currency in view of its relevance in foreign exchange markets, where it is has the third largest turnover of any currency after the us dollar and the euro. the usd / jpy currency pair is also one of the most frequently traded in the world, second to eur / usd ( bis : fx - triennial survey, 2010 ). furthermore, on - site trading in japan will permit us to deepen our contacts with the trade and settlement sections of the bank of japan, which manages accounts and safe custody accounts for the bundesbank within the context of foreign reserve management. the bundesbank also expects this closer contact to yield additional knowledge about the functioning of the japanese economy and monetary policy. furthermore, it will enable contacts with the bank of japan to be strengthened at a political level, too. the bundesbank ’ s trading desk in tokyo will allow it to conduct trading during those hours when tokyo ’ s daily trading volumes are at their heaviest. until now, the time difference has prevented the bundesbank from trading during this market phase and it is therefore currently unable to directly respond to economic data or unexpected market events in japan. in this respect, the opportunity to trade in tokyo will minimise potential losses and help limit risks for investment committee and trading positions. furthermore, trading during the tokyo trading hours will create, in particular, significant scope for reducing transaction costs. compared with the european trading hours, the bid - ask spreads will decrease significantly owing to the greater trading volume and higher level of market liquidity. we are taking advantage of this by shifting a part of our trading activity to this time zone. 5. conclusion there is no doubt that it is now more important than ever for us to gain a deeper understanding of japan, asia and the pacific region. the representative office and the new trading desk will be our window to the asia - pacific region. expanding our presence in tokyo reflects the importance of the japanese financial market and the growing influence of the region in the global economy. bis central bankers ’ speeches the new trading desk will be a great enhancement to the bundesbank ’ s representative office, which already has a long and successful history. today we want to celebrate this launch with you. i hope you enjoy the reception. bis central bankers ’ speeches

of the new regulations could be quite damaging to growth, as seen from the fact that the higher capital requirements for eurozone banks have resulted in deleveraging rather than capital replenishment. fifth, the global financial safety nets need to be strengthened. bilateral central bank swap lines can be an effective mechanism in this regard. at the national level, emes with liberalized capital accounts may also introduce macro - prudential frameworks. and korea ’ s experience in this regard would i think perhaps be useful to other emes. bis central bankers ’ speeches iii. role of central banks now let me briefly touch on the role of the central bank. there is no doubt that central banks have thus far played a pivotal role in crisis management. henceforth, by quickly overcoming the on - going crisis, their role needs to be returned to normal. more precisely, central banks can best contribute to growth by securing price and financial stability and developing effective macro - prudential frameworks for systemic risk control. a gradual withdrawal of the unconventional measures deployed for crisis management should be planned in advance, to guide market expectations smoothly. and major central banks should be always mindful of the possibility of negative financial spillovers to emes. i believe that, at the margin, the benefits for a global solution of preventing negative spillovers outweigh the costs that might be incurred from a domestic perspective. in this respect, cooperation among central banks is crucial. in the current setting, the g20 and other international forums could serve as venues for such cooperation. in the long run, central banks may aim higher, to form a more formal institution such as the international monetary policy committee ( impc ) suggested by many renowned scholars. such an impc might serve as an effective mechanism for evaluating the overall effects on global liquidity of individual central banks ’ monetary policies, and thereby lead toward introduction of a multilateral perspective in policy - making. it can also be a way to make up for the absence of an international lender of last resort. iv. concluding remarks let me conclude now with a few short remarks. the global economy stands at a crossroads at present. we have managed the global crisis relatively well but are yet to leave it behind. the sovereign debt crisis in europe, a legacy of the global crisis, is threatening economic recovery and financial stability, and even posing the risk of another global crisis. without growth, however, successful resolution of the sovereign debt crisis seems only remotely possible. i am hopeful that emes