Japan's Ministry of Finance reported that amendments to the Chiang Mai Initiative Multilateralisation Agreement have taken effect. A new rapid financing facility provides currency swaps for urgent balance of payments needs caused by sudden external shocks. The amendments also allow drawings under the arrangement's precautionary line to be renewed.
Japan's Ministry of Finance reported that amendments to the Chiang Mai Initiative Multilateralisation (CMIM) Agreement have taken effect, introducing a rapid financing facility and allowing precautionary drawings to be renewed. The amendments to the regional financing arrangement were agreed at the ASEAN+3 Finance Ministers and Central Bank Governors’ meeting in May 2024.
The CMIM Rapid Financing Facility provides liquidity through currency swap transactions to members facing actual and urgent balance of payments needs arising from sudden external shocks, such as natural disasters and pandemics. Drawings under the CMIM Precautionary Line can now be renewed, giving members greater flexibility in accessing precautionary liquidity support.
Japan’s Ministry of Finance released the joint statement from the 29th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting, which endorsed an updated strategic direction for the ASEAN+3 Finance Process and measures on regional financial safety nets, market development and disaster risk financing, while warning that Middle East tensions…