These developments are partly attributable to the initiatives by the governments and central banks in the region to foster local currency-denominated bond markets – such as the Asian Bond Markets Initiative (ABMI) and the Asian Bond Fund (ABF). Greater linkages between local bond markets and global bond markets The development of local currency-denominated bond markets help to improve the transmission mechanism of monetary policy.
Masaaki Shirakawa: Recent economic and financial developments and the conduct of monetary policy Statement by Mr Masaaki Shirakawa, Governor of the Bank of Japan, concerning the Bank’s “Semiannual Report on Currency and Monetary Control” before the Committee on Financial Affairs, House of Councillors, Tokyo, 13 April 2010.