ASEAN+3 Strengthens Currency Swap Deal

Finance ministers from the Association of Southeast Asian Nations (ASEAN) and China, Japan and South Korea on Wednesday said they have expanded a network of bilateral currency swap arrangements. This move aims to ward off future financial crises in the region.

"We are pleased to note the significant progress that has been made in implementing the Chiang Mai Initiative to further strengthen our self-help and support mechanisms in East Asia," said a joint statement issued after the ASEAN+3 countries met during the ADB's Annual Meeting.

Japan announced it had struck a $3 billion currency swap deal with Thailand, a $2 billion agreement with South Korea and a $1 billion swap facility with Malaysia. "Our senior officials will continue to work towards establishing a network of bilateral swap and repurchase agreement facilities among ASEAN countries, China, Japan and Korea," the statement said.

The ASEAN+3 also agreed to further enhance policy dialogues and regional cooperation in promoting financial reforms and monitoring short-term capital flows.