[Guest Speaker Seminar]
In conjunction with Case Study (Finance and Development in Emerging Asia II)
“Developing Local Currency Bond Markets in Asia”
Speaker: Mr. Takahiro Tsuda, Senior Deputy Director, International Organizations Division International Bureau, Ministry of Finance (MOF)
Facilitator: Prof. Toshiro Nishizawa, GraSPP
Date & time: Monday, June 6, 2016, 10:25-12:10
Venue: Seminar Room 3 (Room 710), Administration Bureau Building 2
Open to all current students
Before the Asian Financial Crisis (1997-98), Asian countries heavily relied on short-term borrowing denominated in foreign currencies in order to meet their domestic financing needs. When capital flow was reversed, this so-called “double mismatches”—mismatches of currency and maturity— resulted in balance of payment difficulties, and hence large-scale recession. Having learned from this painful experience, Asian emerging countries have enhanced policy initiatives to mitigate this “double mismatches” by developing local currency bond markets. Since then, the size of the local currency bond markets has increased more than seven times. One of such initiatives is Asian Bond Markets Initiative (ABMI) by ASEAN+3.
This lecture attempts to examine how local currency bond markets have been developed in emerging Asia and derive certain policy implications. Our discussion begins with introduction of various diagnosis frameworks presented by international financial institutions. We will touch upon the link between local currency bond markets and macroeconomic policies, such as fiscal, monetary, and debt management policies. Then, by looking at the history of development of bond markets in the region since the Asian Financial Crisis, we will discuss how these frameworks and theories can be applied to emerging Asia’s context. We are also interested in what roles local currency bond markets played in helping emerging Asian countries weather the recent market turmoil episodes.
About the speaker
Mr. Takahiro (“Taka”) Tsuda is currently serving as Senior Deputy Director of International Organizations Division, International Bureau, Ministry of Finance (MOF). He is leading a unit which is responsible for global economy, IMF, and G7/G20 issues. Within this mandate, he plays a coordinating role for the Japan’s G7 presidency in 2016. Before this position, he was in charge of Asian bond market development issues and a senior desk for China, India, and South Korea. He worked at the Monetary and Capital Markets Department of the International Monetary Fund (2010-13), covering sovereign debt market issues. He holds MSc in Finance from London Business School and LL.M. from Cambridge University. He is a CFA Charterholder.