SEOUL: Vice finance ministers of South Korea, China, Japan and the Association of Southeast Asian Nations (ASEAN) have agreed to improve a currency swap mechanism as part of efforts to boost overall financial cooperation, Seoul’s Ministry of Economy and Finance said Friday.
The consensus was reached during the two-day regular meeting of the vice ministers, as well as senior representatives from their central banks, held in the Japanese city of Kanazawa from Wednesday, reported Yonhap news agency.
The officials decided to push for the launch of the Rapid Financing Facility (RFF) under their Chiang Mai Initiative Multilateralisation (CMIM) agreement, which provides prompt financial assistance to its members facing an urgent balance of payments need.
The envisioned RFF is expected to be approved during a ministerial meeting next year, the ministry said.
Launched in 2010, the CMIM is a multilateral currency swap arrangement among the ASEAN+3 nations, which aims to give liquidity to member nations in times of financial crisis. The pool amounts to US$240 billion, with South Korea contributing US$38.4 billion.
“It is crucial to make the regional financial safety net helpful in real terms for member nations. South Korea, as a co-chairman for next year, will actively lead discussions for reform measures,“ Deputy Finance Minister Choi Ji Young said.
The next round of the ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting is scheduled to take place in Tbilisi, Georgia, in May 2024.–Bernama-Yonhap
