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To: Alex who wrote (26143)	1/14/1999 8:09:00 PM
From: goldsnow	Respond to of 116785

Summit to consider world currency controls Japanese PM Obuchi leads calls for a shield from currency woes Finance ministers from across the European Union and Asia begin meeting in Frankfurt on Friday against a backdrop of renewed fears of global financial shocks. Along with the initial success of the European single currency, the Latin American crisis will serve to push the campaign for new world currency order to the top of the meeting's agenda. Leaders have floated the idea of a system tying the world's three major currencies - the dollar, yen and euro - together to boost stability. The 15 EU countries and the seven Asean nations as well as China, Japan and South Korea will be represented at the annual Asia-Europe Meeting on Friday and Saturday. European Central Bank president Wim Duisenberg, Bank for International Settlements managing director Andrew Crocket and EU Commission president Jacques Santer are also scheduled to attend. Spurred by meltdown fears The summit comes in a week that sees the Brazilian economy on the edge of meltdown. Global finance leaders have long feared a Latin American collapse would drag the world into recession on the back of the slowdown already underway after similar crises in Asia and Russia over the last 18 months. Publicly, Asian finance leaders are saying the Brazilian crisis can be contained. But memories of their own currency crashes are still fresh in their minds. "What's happening in Brazil is a good lesson. We've got to manage our economy and make sure we insulate ourselves... ," Malaysian Second Finance Minister Mustapha Mohamed said in London on his way to the Frankfurt meeting. Euro opportunity And the success of the euro has fired imaginations. Many see EMU as an opportunity to create a more stable international currency regime. Japan's Prime Minister Keizo Obuchi, worried by the escalation of the yen against the dollar since the euro's launch, first suggested a currency tie-up last week. He has found an ally in German finance minister Oskar Lafontaine, who wants to introduce global "exchange rate systems" that tie the big three together. In a joint declaration, Lafontaine and his French counterpart Dominique Strauss-Kahn said Europe should "jointly work for exchange rate systems with the emerging markets of Asia, Latin America and central and eastern Europe." Joseph Yam, head of Hong Kong's Monetary Authority, has also suggested that Asian countries should create a common currency to defend the region from future financial shocks. news.bbc.co.uk