Asia Set to Launch Currency Pool
To ensure sufficient U.S. dollar liquidity in the event of a financial crisis, the Association of Southeast Asian Nations, plus Japan, China and South Korea, will launch a $120 billion currency-swap facility on March 24, reports the Wall Street Journal.
"The core objectives… are to address balance of payment and short-term liquidity difficulties in the region, and to supplement existing international financial arrangements," say the countries in a joint statement released by the South Korean government.
To further reinforce regional financial stability, the participating nations will also set up a regional surveillance unit and a facility to provide credit guarantees on bonds issued in the region, says the statement obtained by the Journal.
The funds will now be available to all ASEAN countries plus its three partners, with Hong Kong also participating in the arrangement for the first time. ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Read more on