fbpx

AMRO and the CMIM

2021-05-19T13:57:57+08:00May 19, 2021|Videos|

AMRO and the CMIM

During the Asian financial crisis in 1997-1998, some 30% of the region’s combined GDP was lost. The crisis devastated many Asian economies, destroyed well-established companies, and put millions of people in hardship.

The extreme liquidity shortage prompted 14 Asian economies to form a self-help mechanism: the CMIM agreement, which supplements international financial arrangements. The USD240 billion CMIM facility is a financial safety net for the ASEAN+3 economies; comprising the 10 Southeast Asian countries, as well as China; Hong Kong, China; Japan and Korea.

On March 31, 2021, ASEAN+3 Finance Ministers and Central Bank Governors signed into force an historic amendment to the CMIM agreement. The change allows members to: 1) access a larger amount of CMIM funds, with support from AMRO, and 2) use local currencies, if they wish, as part of financing arrangements.

Related

The Amended Chiang Mai Initiative Multilateralisation (CMIM) Comes Into Effect on 31 March 2021

Sign up to keep abreast of latest economic developments in the ASEAN+3 region.