25th EMEAP (Executives’ Meeting of East Asia-Pacific Central Banks) Governors’ Meeting, [Part I]

The 25^th EMEAP¹ Governors’ Meeting held its first session via video conference on 19 August 2020.  During today’s meeting, Governors exchanged views on recent developments in the regional economy and financial systems amidst the COVID-19 pandemic and reviewed the work of EMEAP in the past year.

Joining the meeting were Governors of EMEAP member central banks, as well as senior representatives from the International Monetary Fund and the Bank for International Settlements.  The meeting was hosted by Mr Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, as this year’s Chair of EMEAP Governors’ Meeting. 

Member central banks noted that the various policy responses by central banks in the region (and globally) have helped to alleviate the economic fallout and financial market stresses stemming from the pandemic.  Proactive communication between central banks and the various stakeholders, including public and industry players, have also helped to ensure smooth implementation of these policy responses.  The Meeting also exchanged views on how policy responses could be calibrated going forward, amid the high uncertainties surrounding the pandemic development and global economy and taking into account the sustainability of such policies.

Member central banks have been in frequent dialogues throughout the financial market stresses this year.  Members recognised that the impact of the pandemic on the economy and financial markets has brought with it substantial policy challenges.  Members have responded with decisive policy action, which in some cases involved fundamental change to the way they pursue their mandates.  Governors reaffirmed the importance of EMEAP as an effective platform for policy dialogues, strengthening regional cooperation, and providing a regional perspective that informs and facilitates discussions at global forums during the current challenging time.

During the meeting, Governors reviewed the reports of recent EMEAP work.  They welcomed the progress of EMEAP projects on banking supervision and resolution, financial markets, payments and market infrastructure, and information technology.  Governors also discussed updates by the Monetary and Financial Stability Committee (MFSC) on its market surveillance and research activities.

Governors also endorsed the publication of the report on Study on US dollar Liquidity and Funding Dynamics in the EMEAP Region.  The report highlights members’ observations on the shifting dynamics of the US dollar in regional financing activities over the years, and its impact on regional financial stability.

Governors agreed to hold a second session of the 25^th EMEAP Governors’ Meeting in November 2020.