New financing facility set up to bolster stability

ASEAN+3 members agree to boost use of non-dollar freely usable currencies

The ASEAN+3 members have agreed to launch a new financing facility that would help economies in the region access liquidity of freely usable currencies, including the renminbi, in times of emergency, a significant step forward in the region's collective efforts to safeguard financial stability amid heightened uncertainties, officials and experts said.

Experts said that the move reflects the region's firm commitment to financial cooperation and regional integration, which would serve as a powerful counterweight to the US' unilateralist pressures and be a key stabilizing force for the global economy.

At the 28th ASEAN+3 Finance Ministers' and Central Bank Governors' Meeting, held on Sunday in Milan, Italy, financial leaders in the region endorsed the establishment of a new facility under the Chiang Mai Initiative Multilateralisation, or CMIM, a regional financial safety net established by ASEAN+3 countries — the 10 members of the Association of Southeast Asian Nations, plus China, Japan and South Korea.