Finance chiefs from the Association of Southeast Asian Nations plus Japan, China and South Korea agreed on Tuesday to enhance a financial safety net for the region to avert possible crises amid an economic slowdown and unstable market activity.
The finance ministers and central bank chiefs also vowed to use all necessary policy tools -- monetary, fiscal and structural -- to promote economic growth, similar to an accord reached last month by financial chiefs of the Group of 20 developed and emerging economies.
Among such policy measures, the participants said the countries will "flexibly deploy fiscal policies to strengthen growth, create jobs and foster innovation, while enhancing resilience and ensuring debt sustainability," a statement said.
The meeting in Frankfurt came as the US dollar plunged about 6 yen after the Bank of Japan kept its monetary policy unchanged last Thursday despite growing market expectation for additional stimulus.
The dollar's weakness has also been bolstered by the US Federal Reserve's seemingly cautious stance over a further interest rate hike amid a slowdown in overseas economies.
"We will closely monitor capital flows and risks stemming from capital flow volatility and respond appropriately to the changing economic environment and financial market volatility in support of the regional economic and financial stability," it said.
As a step to maintain financial stability, the finance chiefs agreed to enhance the "Chiang Mai Initiative Multilateralisation" scheme, which serves as a regional safety net in case of an emergency.
The multilateral currency swap agreement launched in 2010 is designed to provide credit liquidity in financial markets at times of unusual volatility.
Asean groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
On the sidelines of the Asean-plus-three meeting, the finance chiefs of Japan, China and South Korea reaffirmed their "commitment to advancing structural and industrial reform" to increase productivity and potential growth amid persisting uncertainty.
The finance ministers and central bank governors acknowledged global growth remains "modest and uneven," when the global outlook is clouded by "continued financial volatility, low commodity prices and low inflation," a statement released after the meeting said.
To address such concerns, the finance chiefs vowed to continue exploring "policy options" tailored to each country's circumstances to support growth and respond to potential risks.
The three Asian countries also pledged to enhance communication and coordination among them to pursue "strong, sustainable and balanced growth at both national and regional level," it said.