South Korea’s top central banker called Monday for closer collaboration among Asian countries to help cushion the region from the fallout of the spreading global crisis.

The call by Bank of Korea Gov. Kim Choong-soo comes as the crisis in Europe is taking its toll on export-dependent Asian countries and hurting their trading partners. Debt woes in the euro area has also increased capital inflows to emerging markets, strengthening local currencies and generating concerns about financial stability. 

“The global crisis is spreading from the U.S. and other developed economies to emerging countries, and the uncertainty is increasing in Asia,” Kim said at a conference of Southeast Asian central bankers in Seoul.

“Emerging Asian countries should make efforts to deal with external shocks.”

Kim chairs this year’s meeting among governors of Southeast Asian Central Banks, which kicked off earlier in the day for a two-day run.

Kim named an increase in foreign reserves and currency swap deals as possible policy measures that could help prevent the crisis from spreading.

The BOK chief also called on emerging markets in Asia to play a greater role in driving growth in the post-crisis global economy.

Asian central bankers should balance the traditional monetary policy and the macroprudential policy, as the stability in the financial market becomes increasingly crucial to the real economy, he added. 

(Yonhap News)