| Asean Members Sign Chiang Mai Initiative Multilateralization Agreement |
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KUALA LUMPUR, Dec 28 (Bernama) -- The finance ministers and central bank governors of the ASEAN members states, as well as China, Japan and Korea (ASEAN 3) and the Monetary Authority of Hong Kong, China, today announced the signing of the Chiang Mai Initiative Multilateralization (CMIM) Agreement.
The agreement was signed following the conclusion on all the main components of the CMIM outlined at the ASEAN 3 Finance Ministers' Meeting (AFMM 3) in May 2009 in Bali, Indonesia, a joint statement from the Finance Ministry and Bank Negara Malaysia said here Monday.
They said the establishment of CMIM would strengthen the region's capacity to safeguard against increased risks and challenges in the global economy.
The core objectives of the CMIM are to address balance-of-payments and short-term liquidity difficulties in the region and to supplement the existing international financial arrangements.
The CMIM, with the total size of US$120,000,000,000 (one hundred and twenty billion dollars), would provide financial support through currency swap transactions to the CMIM participants facing balance-of-payments and short-term liquidity difficulties.
According to the conditions set out in the agreement, each CMIM participant will be entitled to swap their local currency with the United States dollar for an amount up to its contribution multiplied by its respective purchasing multiplier.
-- BERNAMA
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