CMI & the (East) Asian Monetary Fund

1. CMI & the (East) Asian Monetary Fund

2. ASEAN + 3 Finance Initiatives • Regional Financing Arrangement • Chiang Mai Initiative • Macroeconomic Surveillance • Economic Review and Policy Dialogue

3. Chiang Mai Initiative

4. How CMI works • Currency Swap & Repo • 10% can be drawn without linkage to IMF • Complement/supplement existing international financing facilities

5. Progress • First phase: May 2000 – May 2004 • BSA negotiations • 16 BSAs – USD 36.5 billion • Second phase: May 2004 – May 2006 • CMI Review • Increase size & 2-way swaps (BSAs – USD 75 billion, ASA – USD 2 billion) • Integrate surveillance into CMI • 20% drawn without IMF linkage

6. Progress Third Phase: May 2006 – Present • Multilateralization of BSA network • Self-managed reserve pooling arrangement • Surveillance • Reserve eligibility • Size of commitment • Borrowing quota • Activation mechanism

8. Economic Review & Policy Dialogue

9. Economic Review & Policy Dialogue (ERPD) • ASEAN+3 macroeconomic surveillance • Voluntary participation • Self prepared economic reports based on common template • Interactive discussion at the Deputies level • Specific issue study • Group of Experts • ETWG

10. Towards a Regional Monetary Fund? EAMF

11. Thank You