THE growing access of Asian institutions to international markets has highlighted the need for updated systems to make global payments, replacing the use of telex and fax to make transactions.
The surge in global business, particularly in the foreign exchange market, and the corresponding increase in the magnitude of dollar transactions flowing across borders heightens concern about the efficiency of fund movements.
Central banks in Hong Kong and Singapore, the two major regional foreign exchange centres and focal points for regional trade flow, have recently focused on improving their payment systems.
''The enormous volatility in the equity, forex and derivatives markets means that central banks have to understand the risks involved in the payment systems,'' said Sean Verity, senior vice-president at Chase Manhattan for global payments and treasury services in the Asia-Pacific region.
The big swings in these markets demanded ever-increasing attention to quick access of financial information on the part of system participants, he said.
International payments are settled in a larger varieties of currencies than before. The former dominance of the US dollar as the primary treasury currency has gradually been eroded.