Chiang Mai Initiative Multilateralisation(CMIM)
Objective
The Chiang Mai Initiative Multilateralisation (CMIM) Agreement came into effect on 24 March 2010. With the core objectives (i) to address balance of payment and short-term liquidity difficulties in the region, and (ii) to supplement the existing international financial arrangements, the CMIM provide financial support through currency swap transactions among CMIM participants in times of liquidity need. The CMIM, a multilateral currency swap contract which covers all ASEAN+3 members, was developed from the CMI bilateral swap network to facilitate prompt and simultaneous currency swap transactions through establishing a common decision making mechanism under a single contract. The amended Chiang Mai Initiative Multilateralisation (CMIM) Agreement came into effect on 17 July 2014.
Key points of the amendment to strengthen the CMIM are as follows.
- To double its total size of USD 240 billion (two hundred and forty billion) from USD 120 billion (one hundred and twenty billion)
- To introduce CMIM Precautionary Line
- To increase the IMF de-linked portion from 20% to 30%
This amendment has strengthened the regional safety net for the CMIM participants in responding to potential or actual balance-of-payments and short-term liquidity difficulties.
CMIM contributions
Press Release
- The amended Chiang Mai Initiative Multilateralisation (CMIM) Comes Into Effect on 23 June 2020 (Jun. 23, 2020)
ASEAN+3 Macroeconomic Research Office (AMRO)
AMRO (ASEAN+3 Macroeconomic Research Office) is an independent regional surveillance unit to monitor and analyse regional economies and support Chiang Mai Initiative Multilateralisation (CMIM) decision-making.
Press Release
Asian Bond Markets Initiative (ABMI)
The Asian Bond Markets Initiative has been established based on the agreement between finance ministers at the 6th ASEAN+3 Finance Ministers’ Meeting in August 2003 (Manila, the Philippines). It aims to develop efficient and liquid bond markets in Asia, enabling better utilization of Asian savings for Asian investments. Main activities under ABMI are as follows;
- Issuance of Korean Collateralized Bond Obligations (CBO) with guarantee by the Japan Bank for International Cooperation (JBIC) and the Industrial Bank of Korea (IBK).
- Issuance of local currency-denominated bonds by Japanese subsidiaries in Thailand, Malaysia and Indonesia with a partial credit guarantee from the JBIC and Nippon Export and Investment Insurance (NEXI).
- Issuance of local currency-denominated bonds by the Japan Bank for International Cooperation (JBIC), World Bank, Asian Development Bank (ADB) and the International Finance Corporation (IFC) in Malaysia, Thailand, China, and the Philippines.
- Information dissemination through the Asian Bonds Online (ABO) at the ADB. Market information and statistics of Asian bond markets and progress reports of ABMI are available at the ABO.
- In September 2010, ASEAN+3 Bond Market Forum has been set up to promote cross border bond transaction by standardization of market practice and harmonization of regulations. In April 2012, ABMF published ASEAN+3 Bond Market Guide. ABMF is also implementing ASEAN+3 Multi-currency Bond Issuance Framework, aiming standardization of bond listing process at each country’s pro-bond market. Pilot issuance under AMBIF has been executed in September 2015.
- In November 2010, Credit Guarantee and Investment Facility (CGIF) has been established to contribute to expansion of bond market by granting guarantee to the bond issued by the company in ASEAN+3. After 1st guarantee in April 2013, CGIF is expanding their portfolio.
In May 2016, Medium Term Roadmap has been adopted, enumerating future activities, confirming to take step by step approach. Roadmap will be reviewed periodically to prioritize the issues and raise new issues.