The amended Chiang Mai Initiative Multilateralisation (CMIM) agreement came into effect on November 11, Japan’s Ministry of Finance said. The CMIM is the regional financing arrangement among the finance ministers and central bank governors of the ASEAN member states, China, Japan and Korea, and the Monetary Authority of Hong Kong, and the amendment was agreed at the ASEAN+3 finance ministers and central bank governors’ meeting in May 2024.
The amendment creates a CMIM Rapid Financing Facility, which provides liquidity support through currency swap transactions to a member experiencing an actual and urgent balance of payments need stemming from sudden exogenous shocks such as natural disasters and pandemics. It also allows drawings under the CMIM Precautionary Line to be renewed, giving members greater flexibility in accessing precautionary liquidity support. The ministry said the amendment further strengthens the CMIM, which stands at the centre of the regional financial safety net of ASEAN+3.