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ASEAN Swap fund to smooth the Asian currency markets

The 11th ASEAN+3 finance ministers' meeting has adjusted the CMI, or Qing Mai Initiative at a regional financing arrangement and set a fund target of $80 Billion. 

The CMI was agreed to  by the 13 countries in 2000 to swap foreign exchange reserves, mainly on bilateral basis, to use when necessary to fight against speculative attacks on their currencies such as during the 1997-1998 Asian financial crisis. Japan, China and South Korea will probably contribute 80 percent of the fund with the rest covered by the other members.

A self-managed reserved pooling arrangement governed by a single contract or multilateralized CMI is the next step and will probably follow next years meeting.

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