05 May 2018
- RSIS
- Publication
- External Publications
- No knight in shining armour for CMIM- East Asia Forum
No knight in shining armour for CMIM- East Asia Forum
After the Asian financial crisis, East Asia witnessed never before seen regional financial cooperation. Countries’ realisation of their economic vulnerabilities coupled with a strong aversion towards the assistance of the International Monetary Fund (IMF) during the crisis tempted policymakers to seek regional ‘self-help’ mechanisms. The result was the ASEAN+3 financial cooperation process set up in 2000, which established regional financial governance architectures including the Chiang Mai Initiative Multilateralisation (CMIM). Its purpose was to provide short-term liquidity assistance through a network of currency swaps in case of balance-of-payments difficulties.
After the Asian financial crisis, East Asia witnessed never before seen regional financial cooperation. Countries’ realisation of their economic vulnerabilities coupled with a strong aversion towards the assistance of the International Monetary Fund (IMF) during the crisis tempted policymakers to seek regional ‘self-help’ mechanisms. The result was the ASEAN+3 financial cooperation process set up in 2000, which established regional financial governance architectures including the Chiang Mai Initiative Multilateralisation (CMIM). Its purpose was to provide short-term liquidity assistance through a network of currency swaps in case of balance-of-payments difficulties.
