New Chiang Mai Initiative fortifies Asean+3, HK financial safety nets

The central bank said that the amended Chiang Mai Initiative Multilateralization (CMIM), which took effect on Thursday, will fortify member countries’ financial safety nets against balance of payments (BOP) and liquidity problems.

CMIM is a multilateral arrangement among the finance ministries and central banks of the Association of Southeast Asian Nations member countries plus China, Japan and Korea (Asean+3), and the Hong Kong Monetary Authority, which provides a single contractual agreement for the purpose of providing financial support by facilitating US dollar-denominated currency swap transactions among them.