Central banks under pressure

Speaking at the FX Week Asia congress in Singapore last Tuesday (October 9), Guinigundo said volatility in financial markets could continue for a few months, as there could be periodic revelations of problems in conduit companies and structured investment vehicles. "More funds may also blow up, including during the period of mortgage resets in late 2007 until 2008."

He said that, as developments related to the US subprime market unfold, monetary authorities are keeping a close watch on conditions