ASEAN Plus 3 revises agreement protecting regional finance
Updated : Sunday, December 16, 2018 10:21 AM (GMT+0700)

The Association ofSoutheast Asian Nations (ASEAN) and their partners, namely China, Japan, andthe Republic of Korea (RoK) agreed on December 14 to revise the Chiang MaiInitiative Multilateralisation (CMIM) Agreement – a regional financial safetynet.

Leaders of ASEAN countries and China, Japan and the Republic of Korea pose for a photo
at the 21st ASEAN Plus Three Summit in Singapore last November - Photo: VNA

According to the RoK’s Ministry of Economy and Finance, thedecision was made by deputy finance ministers and the deputy governors of thecentral banks of ASEAN Plus 3 countries at a meeting to discuss key regionalissues in Busan.

Previously, at a meeting in May in Manila, the Philippines,the finance ministers and central bank governors of these countries reached aconsensus on stepping up the implementation of the CMIM, intensifying financialcooperation, and supporting multilateral trade and investment systems.

They also agreed to build a new comprehensive legal basis tocreate favourable conditions for the CMIM to support member states inaddressing risks through policy recommendations and financial assistance.

The 240-billion-USD CMIM, which took effect in 2010, is amultilateral currency swap contract between ASEAN Plus 3 countries to increasetheir response to rising risks and fluctuations in the global economy. 

CMIM provides financial support through currency swaptransactions to its participants facing difficulties in the balance of paymentsand short-term liquidity.

Source: VNA 

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