New Zealand’s Reserve Bank intends to invest $US50 million and Australia $US222 million in the newly created EMEAP Asian Bond Fund 2 as part of its foreign reserves, and as part of a programme by 11 East Asian & Pacific central bank to strengthen the bond market in the region.
The fund will invest about $US2 billion in domestic bonds of 8 of the 11 Emeap markets - China, Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Singapore & Thailand. The other Emeap countries are New Zealand, Australia & Japan.
Emeap is the Executives’ Meeting of East Asia & Pacific Central Banks Group. Its first bond fund, in June 2003, went into $US-denominated bonds issued by member countries & quasi-sovereign issuers
Private sector investors will be able to invest in the sub-funds in 2005.Website: Emeap