The amended Chiang Mai Initiative Multilateralisation (CMIM) took effect Nov. 11, adding emergency swap support for actual, urgent balance-of-payments needs and reinforcing ASEAN+3’s regional financial safety net.
Japan’s Ministry of Finance announced the change. The CMIM brings together ASEAN member states, China, Japan and Korea, alongside the Monetary Authority of Hong Kong, China. ASEAN+3 finance ministers and central bank governors agreed to the amendment in May 2024.
The new CMIM Rapid Financing Facility (CMIM-RFF) can provide liquidity through currency swaps when a CMIM party has an actual, urgent balance-of-payments need. The ministry cited natural disasters and pandemics as examples of sudden external shocks that could prompt such a need.
The amendment makes CMIM Precautionary Line drawings renewable, giving members more options for precautionary liquidity support. Japan’s ministry said the change would strengthen the CMIM’s role in the ASEAN+3 financial safety net.
