Following its rapid recovery from recent crises, Asia should now play "a more proactive role" toward global monetary and financial stability, a seminar led by ranking international finance officials was told on Wednesday.

The event, which coincided with this week's Asian Development Bank annual governors meeting in Hanoi, Vietnam, discussed possible ways to reform the international monetary system that, according to Asian finance experts, no longer reflects current economic realities.

ADB president Haruhiko Kuroda told the seminar that Asia must "promote itself to play a greater role in correcting major gaps and weaknesses in the international monetary system."

"Deeply rooted problems" in the system must be addressed with collective efforts if Asia is to achieve strong, sustainable and inclusive growth, he said.

Mr Kuroda identified these problems as "persistent global imbalances, large and volatile capital flows, undue exchange rate pressures, and disruptions in providing sufficient global liquidity in times of market distress."

After achieving rapid economic ascent and growing influence in global economic governance, Asia must, according to the ADB president, "accept greater responsibility in global economic and financial affairs by playing a more proactive role in designing an effective multilateral framework that promotes global monetary and financial stability."

French Finance Minister Christine Lagarde, who was co-chair of the seminar, told the forum that while there was no move to replace the US dollar as the world's major currency, there were risks in having a single dominant currency.

What is needed, Ms Lagarde said, is "a more comprehensive and better organized system; a system that is more in sync with the real economy."

She said the basket of currencies behind the IMF's Special Drawing Rights must be enlarged to be more representative of the world's multi-polar economy.

Japanese Finance Minister Yoshihiko Noda followed that up with a call for deeper discussions within the G20 on the issue of reforming the international monetary system and on further reform of the IMF's Special Drawing Rights.

The International Monetary Fund, represented at the seminar by deputy managing director Naoyuki Shinohara, has intensified its current study of the various experiences in emerging markets, especially on how they have dealt with capital flows.

Mr Shinohara said the comprehensive study, which is taking into account the situation of capital recipients and capital originators, is intended to aid in formulating a framework to help countries manage volatile capital flows.

The ADB has previously pointed out that the world's leading economies now include high-growth China, Brazil, and India while the most advanced economies are saddled with slow growth and high government debt.

Under this environment, the current international monetary system fails to address issues such as large and volatile capital flows, undue exchange rate pressures, and disruptions in providing sufficient global liquidity in times of market distress, the regional development bank said.

Indian Finance Minister Pranab Mukherjee, who was also a resource speaker at the seminar, noted the need for "well-regulated markets" to ensure stability in the financial system.

However, each country must be given flexibility to regulate capital flows according to their respective circumstances, Mr Mukherjee said.

- J.Galang