Latest news with #CMIM
South China Morning Post
06-05-2025
- Business
- South China Morning Post
Has Asia just taken a step away from the US dollar?
Asia's largest economies made a decision that could signal a shift away from the US dollar on Sunday, as they approved a new rapid financing mechanism that will for the first time use regional currencies including the Chinese yuan. Advertisement The new scheme has been rapidly approved as countries across East and Southeast Asia look to shield themselves from the financial volatility unleashed by US President Donald Trump's global tariff war, which has triggered turbulence in the US Treasuries market and an Asian currency rally in recent days. It may also herald a deeper, longer-term shift towards a regional monetary mechanism that is less reliant on the dollar – and gives China a bigger role. In this explainer, the Post breaks down the details of the new financing mechanism, and what it means for the future of Asia and the dollar-based global financial system. What is the context behind this decision? The new rapid financing mechanism is part of a broader scheme known as the Chiang Mai Initiative Multilatalisation (CMIM) – a currency swap arrangement among the 10-member Association of Southeast Asian Nations (Asean), China, Japan and South Korean.
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First Post
06-05-2025
- Business
- First Post
ASEAN Plus Three launches new lending facility to boost regional financial resilience
The new rapid financing facility will enable members to access emergency financing without conditions in case of financial crises arising from sudden shocks read more A man walks next to the ASEAN logo during the ASEAN Foreign Ministers' Retreat in Langkawi, Malaysia. File image/ Reuters Japan, China, South Korea and the 10 ASEAN countries agreed to enhance their regional financial safety net by launching a new lending facility aimed at swiftly responding to crises caused by pandemics and natural disasters. The finance leaders of the so-called ASEAN Plus Three group agreed at their meeting in Milan, Italy, on Sunday to establish the new facility under their currency swap arrangement known as the Chiang Mai Initiative Multilateralization (CMIM). The CMIM, created after the 1997-98 Asian financial crisis, is designed to support regional financial stability by allowing members to tap currency swap lines. STORY CONTINUES BELOW THIS AD The new rapid financing facility will enable members to access emergency financing without conditions in case of financial crises arising from sudden shocks. 'We believe that this new CMIM facility will enhance regional resilience,' the group said in a joint statement. The CMIM pool currently amounts to $240 billion in foreign exchange reserves, with Japan and China each contributing $76.8 billion, South Korea $38.4 billion and the 10 Association of Southeast Asian Nations members a combined $48 billion. The CMIM's two existing facilities - a crisis resolution instrument and a precautionary line - have never been utilised as members have turned to other resources with simpler decision-making processes such as bilateral swap lines.
AsiaOne
06-05-2025
- Business
- AsiaOne
Japan, China, South Korea, Asean enhance regional financial safety net, Money News
Japan, China, South Korea and the 10 Asean countries agreed to enhance their regional financial safety net by launching a new lending facility aimed at swiftly responding to crises caused by pandemics and natural disasters. The finance leaders of the so-called Asean Plus Three group agreed at their meeting in Milan, Italy, on Sunday (May 4) to establish the new facility under their currency swap arrangement known as the Chiang Mai Initiative Multilateralization (CMIM). The CMIM, created after the 1997-98 Asian financial crisis, is designed to support regional financial stability by allowing members to tap currency swap lines. The new rapid financing facility will enable members to access emergency financing without conditions in case of financial crises arising from sudden shocks. "We believe that this new CMIM facility will enhance regional resilience," the group said in a joint statement. The CMIM pool currently amounts to US$240 billion (S$310 billion) in foreign exchange reserves, with Japan and China each contributing US$76.8 billion, South Korea US$38.4 billion and the 10 Association of Southeast Asian Nations members a combined US$48 billion. The CMIM's two existing facilities — a crisis resolution instrument and a precautionary line — have never been utilised as members have turned to other resources with simpler decision-making processes such as bilateral swap lines.
Japan Today
05-05-2025
- Business
- Japan Today
Japan, China, South Korea, ASEAN enhance regional financial safety net
FILE PHOTO: A man walks next to the ASEAN logo during the ASEAN Foreign Ministers' Retreat in Langkawi, Malaysia, January 18, 2025. REUTERS/Hasnoor Hussain/File photo By Makiko Yamazaki Japan, China, South Korea and the 10 ASEAN countries agreed to enhance their regional financial safety net by launching a new lending facility aimed at swiftly responding to crises caused by pandemics and natural disasters. The finance leaders of the so-called ASEAN Plus Three group agreed at their meeting in Milan, Italy, on Sunday to establish the new facility under their currency swap arrangement known as the Chiang Mai Initiative Multilateralization (CMIM). The CMIM, created after the 1997-98 Asian financial crisis, is designed to support regional financial stability by allowing members to tap currency swap lines. The new rapid financing facility will enable members to access emergency financing without conditions in case of financial crises arising from sudden shocks. "We believe that this new CMIM facility will enhance regional resilience," the group said in a joint statement. The CMIM pool currently amounts to $240 billion in foreign exchange reserves, with Japan and China each contributing $76.8 billion, South Korea $38.4 billion and the 10 Association of Southeast Asian Nations members a combined $48 billion. The CMIM's two existing facilities - a crisis resolution instrument and a precautionary line - have never been utilised as members have turned to other resources with simpler decision-making processes such as bilateral swap lines. © Thomson Reuters 2025.
Yahoo
05-05-2025
- Business
- Yahoo
Japan, China, South Korea, ASEAN enhance regional financial safety net
By Makiko Yamazaki (Reuters) -Japan, China, South Korea and the 10 ASEAN countries agreed to enhance their regional financial safety net by launching a new lending facility aimed at swiftly responding to crises caused by pandemics and natural disasters. The finance leaders of the so-called ASEAN Plus Three group agreed at their meeting in Milan, Italy, on Sunday to establish the new facility under their currency swap arrangement known as the Chiang Mai Initiative Multilateralization (CMIM). The CMIM, created after the 1997-98 Asian financial crisis, is designed to support regional financial stability by allowing members to tap currency swap lines. The new rapid financing facility will enable members to access emergency financing without conditions in case of financial crises arising from sudden shocks. "We believe that this new CMIM facility will enhance regional resilience," the group said in a joint statement. The CMIM pool currently amounts to $240 billion in foreign exchange reserves, with Japan and China each contributing $76.8 billion, South Korea $38.4 billion and the 10 Association of Southeast Asian Nations members a combined $48 billion. The CMIM's two existing facilities - a crisis resolution instrument and a precautionary line - have never been utilised as members have turned to other resources with simpler decision-making processes such as bilateral swap lines.
