Money

China central bank chief wants controls on derivatives

(Agencies)
Updated: 2010-04-24 17:19

BEIJING - Zhou Xiaochuan, governor of the People's Bank of China, has called for tighter controls on derivatives and warned that the global financial system remained quite fragile.

Zhou made his comments to a meeting of finance ministers and central bankers from the Group of 20 developed and emerging economies in Washington.

Finance Minister Xie Xuren urged developed countries to consider the impact that unwinding anti-crisis stimulus policies would have on the world economy, particularly on developing nations.

He reaffirmed that Beijing would pursue an appropriately relaxed monetary stance.

Zhou acknowledged that systemic financial risk was being reduced. But he called for more cooperation to bridge differences and establish a more stable and safe global financial order.

He also demanded more transparency and regulation, particularly of derivatives, which many say played a key role in the crash of world financial markets.

"We should strengthen supervision of over-the-counter derivatives markets; because the development level of each country's derivatives market is different, we should implement unified management standards," the statement quoted him as saying.