For the majority of developing countries, including those in the Asian region, which continue to depend on export performance, appropriate exchange rate determination is of great importance as volatility imposes significant real effects in terms of fluctuations in employment and output and the distribution of activity between tradeables and non-tradeables, fluctuations that are difficult to absorb in such economies.
There are also the risks of tax evasion, money laundering and the financing of terrorism, which may have profound consequences for wealth inequality, peace and well-being of our civil society. The cross-border nature of these issues makes international coordination and information sharing essential to address effectively these risks.