The Chiang Mai Initiative Multilateralisation (CMIM) is a multilateral currency swap arrangement among ASEAN+3 members, which came into effect on 24 March 2010. Its core objectives are (i) to address balance of payment and/or short-term USD liquidity difficulties in the ASEAN+3 region, and (ii) to supplement existing international financial arrangements. The contracting parties to the CMIM Agreement comprise the finance ministries and central banks of ASEAN+3 Countries (Brunei Darussalam, Cambodia, China, Indonesia, Japan, Korea, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam), and Hong Kong Monetary Authority of Hong Kong, China.
In 2000, in the wake of the Asian Financial Crisis, ASEAN+3 financial authorities decided to strengthen their financial cooperation through the establishment of the Chiang Mai Initiative (CMI), comprising a network of bilateral swap agreements among members. In 2010, the CMI was multilateralized into a single contractual agreement called the CMIM Agreement and the total size of the CMIM facility was expanded and established at USD 120 billion. The evolution of the CMI into the CMIM marked an important milestone, exemplifying the members’ strong commitment to continuously improve and promote financial stability in the region. The CMIM was further strengthened in 2014 by doubling the size to USD 240 billion, increasing the CMIM-IMF De-linked Portion to 30%, and extending the maturity and supporting periods. A crisis prevention facility, CMIM Precautionary Line (CMIM-PL), was also introduced, in addition to the existing CMIM Stability Facility (CMIM-SF) for crisis resolution function.
Since then, the CMIM members have repeatedly affirmed their commitment to further strengthen the CMIM as part of the regional financial safety net. The CMIM has been further enhanced through conducting test runs, revising the Operational Guideline, conducting the periodic review, developing the peacetime checklist, and so on.