Likewise, Asia should ensure it has its own ‘carbon-fibre curtain’ of policy adaptability and flexibility to manage destabilising movements in the financial system. Despite the inevitable diversification of de facto reserve currencies, the dollar will remain a significant force to facilitate global trade and cross-border capital flows. Thus, it is of primary importance for Asia, in particular the emerging markets, to ensure that economic fundamentals are strong and financial markets are resilient with adequate buffers. At the same time, we need to continuously improve the necessary infrastructure for corporates, businesses and financial institutions to transact in a multi-currency environment. Currently, cross-border trade within the ASEAN region are transacted and settled mostly in dollars despite almost half of ASEAN trade being intra-regional. It makes economic and business sense, that transacting in local currencies would enhance the efficiency of trade and investments, with strong probability of reducing the cost of doing business. In an environment of volatile market conditions, businesses will have more options to choose the currency to transact, providing flexibility and insulation from exogenous shocks. Greater usage of local currencies would be an impetus for the development of the region’s financial markets, consistent with ASEAN’s collective vision for an integrated cross-currency market. Malaysia has been forward-looking in preparing for the inevitability of a multi-currency market: i. We have diversified our international reserves into emerging market currencies in early 2000, including into renminbi assets. We were confident in the diversification benefits given the strength and sustainability of China and emerging markets’ economic growth.
Peter Pang: Hong Kong Mortgage Corporation retail bond issues Opening remarks by Mr Peter Pang, Deputy Chief Executive of the Hong Kong Monetary Authority and Executive Director of the Hong Kong Mortgage Corporation Limited, at the Signing Ceremony for the Retail Bond Issue under the HKMC's Retail Bond Issuance Programme, Hong Kong, 1 September 2006. *  *  *  Good afternoon ladies and gentlemen, On behalf of the Hong Kong Mortgage Corporation, I welcome you all to this signing ceremony for the new retail bond to be offered to the public next Monday. Five years ago, in October 2001, the HKMC introduced a mechanism to offer retail bonds through placing banks. This move received very warm welcome from both the banking sector and retail investors. So far, we have issued eight retail bonds for a total amount of $ billion. Two major factors are behind the success of the HKMC's retail bond issues. First it is our strong credit rating. In fact, our credit rating has recently been upgraded by S&P’s to AA with stable outlook and by Moody's to Aa3 with positive outlook. Secondly, the HKMC meets the needs of retail investors through continual product innovation. On this occasion, we again bring some new features to our retail bond issuance. Apart from issuing two-year notes in Hong Kong Dollar and in US Dollar, we are introducing a new 10-year Hong Kong Dollar Zero Coupon Bond.