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China sees case for more global economic stimulus

Published 03/25/2009, 08:49 PM
Updated 03/25/2009, 08:56 PM

BEIJING, March 26 (Reuters) - Countries should increase their economic stimulus packages if need be to boost market confidence, Chinese Finance Minister Xie Xuren said.

In an interview with the official Xinhua news agency carried overnight, Xie also called for greater international monetary coordination to ensure the stability of major currencies.

Xie also made the following points:

-- There is a need for greater global oversight of the economic policies and financial markets of countries with major reserve currencies;

-- The Chiang Mai Initiative of currency swap lines among Asian central banks should be expanded to $120 billion from $80 billion as a stepping stone towards creating a regional foreign exchange reserve pool;

-- China supports more capital for international financial institutions, including the International Monetary Fund and the Asian Development Bank;

-- The capital adequacy of the World Bank, the Inter American Development Bank and the African Development Bank should be discussed;

-- Developing countries should have more say in the running of international financial institutions, which should recruit more staff from emerging economies.

-- China will participate in a plan being drawn up by the International Finance Corp, the private sector arm of the World Bank, to provide trade finance for developing countries. (Reporting by Langi Chiang; Editing by Alan Wheatley)

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