Association of Southeast Asian Nations, Japan and South Korea to build 120 billion U.S. dollars foreign exchange reserves in Asia Library

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 6, 2010 -- December 28 China news agency Xinhua China 28, the Ministry of Finance and the central bank said the Association of Southeast Asian Nations, Japan and South Korea (10 +3) finance ministers and central bank governors as well as the Hong Kong Monetary Authority Chief Executive has announced that the multilateral agreements signed by the Chiang Mai Initiative.

The Chiang Mai Initiative of the total size of the Multilateral 120 billion U.S. dollars. See the share from the announcement, China and Japan each be responsible for 32%, were 38.4 billion U.S. dollars; South Korea's commitment to 16 percent, totaling 19.2 billion U.S. dollars; Association of Southeast Asian Nations into a commitment to two.

Chiang Mai Initiative's core objective is to multilateral solution in the region of international balance of payments and short-term liquidity problems, and supplement existing international financial arrangements. That it will face through currency swap transactions to the international balance of payments and short-term liquidity difficulties in multilateral participants in the Chiang Mai Initiative to provide financial support. The parties involved have the right to the procedure laid down under the agreement and conditions in its share of funding with a specific loan amount obtained by multiplying the multiplier, the currency with the U.S. dollar with its implementation of the swap.
The Asian financial crisis, some scholars have proposed the establishment of East Asia's foreign exchange reserves library's recommendation that a certain share of the East Asian countries will import the pool of foreign exchange reserves, strengthening the region to prevent and respond to the challenges of risk and, through economies of scale reduce the countries to guard against financial crisis, forced to hold excess reserves.

In May 2009, the 10 +3 meeting of finance ministers issued a joint communique, announcing the regional share of foreign exchange reserves, bank financing, borrowing methods and monitoring mechanisms to reach a consensus, the scale of 120 billion U.S. dollars in foreign exchange reserves in the Asian region before the end of library was formally established and is operational.
Observers here believe that, put forward the bilateral currency swap as the core of the Chiang Mai Initiative, to promote multilateral Chiang Mai Initiative, to building regional foreign exchange reserves, library, marking the Asian financial cooperation and a major step forward. But there are still some factors that play a constraining role of foreign exchange reserves, libraries, such as the total amount is relatively small, and other operational details yet to be established.