Samarkand: Finance ministers and central bank chiefs from Japan, China, South Korea, and the Association of Southeast Asian Nations convened in Samarkand, Uzbekistan, to discuss bolstering cooperation in response to risks arising from increasing tensions in the Middle East.
According to Philippines News Agency, the Asian finance officials issued a joint statement emphasizing that the escalation of conflict in the Middle East has significantly increased downside risks to the regional economic outlook. They highlighted the necessity of multilateralism and reinforced regional unity to tackle common challenges and uncertainties.
Japan and the Philippines co-chaired the meeting, with Japan represented by Finance Minister Satsuki Katayama and Bank of Japan Deputy Governor Ryozo Himino. At the concluding press conference, Katayama noted that participants concurred on the importance of regional cooperation to mitigate the economic effects of Middle East tensions.
During the discussions, attendees agreed to enhance the Chiang Mai Initiative's currency swap functions to better respond to financial crises. The joint statement also acknowledged Japan's commitment of USD 10 billion in financial aid to Asian economies facing crude oil shortages.
The reliance on Middle Eastern crude oil and resources by Asian countries underscores the significance of this aid. Southeast Asian nations, which produce various oil-related products for Japan, including medical supplies, stand to benefit from secured supplies through this financial support.
Additionally, the Asian Development Bank's annual meeting commenced on Sunday, with the ADB pledging USD 70 billion by 2035 to support cross-border power supply networks and digital infrastructure in Asia. ADB President Masato Kanda expressed that this assistance aims to promote a resilient and inclusive future, fostering sustainable prosperity in the region.
Furthermore, the ADB introduced a framework to develop supply chains for critical minerals in Asia, with Japan contributing USD 20 million to this initiative.
