Asia’s rise and the missing link

With the collapse of Lehman Brothers in 2008, the CMI member countries (China, Japan, South Korea and the 10 Asean members) decided to multilateralise the bilateral currency swap arrangements to be better able – but never completely – to face the magnitude of crisis portended by the biggest financial bankruptcy in corporate history. – AFP

It must see the importance of financial stock and financial flows for its real economies

IN 2000, when the Chiangmai Mai Initiative (CMI) was first pronounced in the aftermath of the 1997-1998 Asian financial crisis, there was plenty of disquiet at this “parallel” arrangement to the International Monetary Fund (IMF). And this, which evolved into 16 bilateral currency swap arrangements by 2008, was designed purely as a defensive measure against speculative attack on regional currencies which caused so much havoc in the Asian crisis.