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Japan not reluctant to sign Asian repo pact--MOF

TOKYO: Japan would not be reluctant to sign a so-called repo pact with other Asian nations on stabilising currency rates, Takatoshi Kato, vice minister of finance for international affairs at the Ministry of Finance (MOF), told Reuters on Friday.

Asked if Japan was interested in signing repo pacts, Kato said: "We are not reluctant, but we are studying the situation."

A series of bilateral securities repurchase accords, or "Asian repo" pacts, forged last November, allow central banks to borrow U.S. government securities from each other, bolstering foreign currency reserves and mobilising them to protect their currencies. They allow central banks to quickly obtain cash to shore up their currency without going into the open market, and are seen as a way to boost confidence in the currency when it comes under speculative attacks.

Kato was speaking after attending a symposium in Tokyo on Asian financial markets.

At the symposium, which was attended by officials from 10 Asian economies, a Bank of Japan (BOJ) official also said Tokyo was considering signing such a pact.

"We are exploring the possibility of joining a similar arrangement with Asian central banks and monetary authorities, but this has not been decided yet," said Akira Nagashima, deputy governor for international relations at the BOJ.

Kato told the symposium: "For the moment, we are following developments that materialised in Hong Kong last November."-Reuter