Regional Financing Arrangement

Regional Financing Arrangement

• Regional Financing Arrangement

• Chiang Mai Initiative

• Macroeconomic Surveillance

• Economic Review and Policy Dialogue

Currency Swap & Repo

• Currency Swap & Repo

• 10% can be drawn without linkage to IMF

• Complement/supplement existing international financing facilities

First phase: May 2000 – May 2004

• 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

Third Phase: May 2006 – Present

• Third Phase: May 2006 – Present

• Multilateralization of BSA network

• Self-managed reserve pooling arrangement

• Surveillance
• Reserve eligibility
• Size of commitment
• Borrowing quota
• Activation mechanism

ASEAN+3 macroeconomic surveillance

• 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