In this regard, developing highly efficient and liquid local currency bond markets is essential. Past initiatives in the region have enriched the primary markets. We may therefore need to put more focus on developing liquid secondary markets. As presented in Chart 3, according to a survey conducted by Asian Bonds Online, there is no single factor that inhibits the development of the secondary markets.
Over the medium-term, efforts made to diversify trade towards emerging market and developing economies should be stepped up. In this context, there is greater scope for trade and financial integration in the SAARC region which will be mutually beneficial. BIS central bankers’ speeches  7