HIGHLIGHTS-Central bankers' comments at Basel meeting

[Joanne98]

BASEL, Switzerland, March 9 (Reuters) - Below are highlights of comments from central bankers speaking on Monday on the sidelines of a regular gathering at the Bank for International Settlements in Basel.

MARTIN REDRADO, ARGENTINE CENTRAL BANK GOVERNOR

ON EMERGING ECONOMIES

'Currency mismatches... are hurting severely eastern Europe. What we have is very strong strains on banks in eastern Europe and that will create a severe problem on the banking sector all over Europe (which is) heavily exposed, unless you tackle the problem of currency mismatches. The rest of the emerging economies are weathering the crisis more resiliently but... there have been massive capital outflows from emerging economies including Latin America and two main risks that I see (are) financial nationalism... and exchange rate protectionism.'

'At the G20 the main concern that Latin America and Asia economies have is precisely flight to quality. The paradox that is happening in the world where (there is) flight to quality, is to buy U.S. Treasury bills which is where the problem originated. Clearly that is hurting financial and growth possibilities (of emerging economies).'

http://www.forbes.com/feeds/afx/2009/03/09/afx6140959.html