KUALA LUMPUR: Malaysia believes establishing an international monetary cooperation mechanism should be considered to ensure a more effective, equitable financial system that can balance the needs of universal development.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said a cooperation like this is not new as there has been cooperation at the global level to deal with uncertainties in the international currency market before.
"One of the examples is the Plaza Accord in 1985, which aims to depreciate the value of the US dollar against the Japanese yen and the German mark through intervention in the international currency market.
"This was followed by the Louvre Accord in 1987, which aimed to stabilise the international currency market and stop the continuous decline of the US dollar following the Plaza Accord," he said today.
He said there were also global-level collaborations during the in 2008 global financial crisis, when central banks in developed countries worked together to prevent the crisis from spreading worldwide.
He said multilateral institutions such as the International Monetary Fund, World Bank, Bank for International Settlement and International Organisation of Securities Commissions need to be more proactive in helping developing countries such as Malaysia and others in the region.
"Global powerhouses need to bear the responsibility of their policy decisions."
He said he would voice the matter at the IMF and World Bank's autumn meeting, which would convene in mid-October.--BERNAMA