BEIJING – The amended Chiang Mai Initiative Multilateralisation (CMIM) Agreement, a regional financing deal, came into effect on Wednesday, according to China's central bank.
The amended agreement institutionalized the use of members' local currencies, in addition to the US dollar, for CMIM financing on a voluntary and demand-driven basis
The CMIM agreement is jointly signed by the finance ministers and central bank governors of member states of the Association of Southeast Asian Nations (ASEAN), China, Japan and Korea (ASEAN+3) and the Monetary Authority of the Hong Kong Special Administrative Region.
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The amended agreement institutionalized the use of members' local currencies, in addition to the US dollar, for CMIM financing on a voluntary and demand-driven basis, the People's Bank of China (PBOC) said in a statement on its website.
The amendment increased the International Monetary Fund De-linked Portion from 30 percent to 40 percent of each member's maximum arrangement amount, the PBOC said, noting that it also addressed other technical issues, including revisions related to the London Inter-bank Offered Rate reform.
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The amendment serves to further enhance the CMIM, which is an essential part of the regional financial safety net of the ASEAN+3, making it more effective and operationally ready for member economies, the PBOC said.