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          BIZCHINA> Top Biz News
          China, Japan, S Korea reach agreement on reserve pool
          (Xinhua)
          Updated: 2009-05-03 10:33

          China, Japan, S Korea reach agreement on reserve pool 

          Chinese Finance Minister Xie Xuren (L) poses for a group photo with his Japanese counterpart Kaoru Yosano (C) and his South Korean counterpart Yoon Jeung-hyun before their meeting in Bali, Indonesia, May 3, 2009. [Xinhua Photo]

          China, Japan, and South Korea have reached an agreement on the distribution ratio of a $120-billion regional foreign-exchange reserve pool plan in Bali, Indonesia on Sunday.

          China, Japan, and South Korea will contribute to the pool on a 2:2:1 ratio, namely $38.4 billion from China and Japan each and $19.2 billion from South Korea.

          The agreement on the reserve pool, established to help countries tackle a possible foreign capital flow shortage, was reached at a meeting of finance ministers of the three countries on Sunday.

          China, Japan, S Korea reach agreement on reserve pool 

          Chinese Finance Minister Xie Xuren, front, attends a meeting with his Japanese counterpart Kaoru Yosano and his South Korean counterpart Yoon Jeung-hyun in Bali, Indonesia, May 3, 2009.[Xinhua Photo]

          At the meeting, the ministers vowed to enhance regional economic and financial cooperation under current circumstances, and make due efforts to the regional financial stability and economic revival.

          The committed contribution from the three countries made up 80 percent of the $120-billion pool.

          Financial ministers from the Association of Southeast Asian Nations (ASEAN) and Japan, China and South Korea (10+3) decided in February to increase the size of the reserve pool to $120 billion from $80 billion.

          The reserve pool was established on basis of Chiang Mai initiative, a bilateral currency swap arrangement introduced in May 2007.


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