A MAJORITY of Cambodia’s lawmakers voted for the Kingdom’s entry into the Chiang Mai Initiative (CMI) on Tuesday.
A total of 81 of Cambodia’s 91 officials, from the ruling Cambodian People’s Party (CPP) and the Sam Rainsy Party (SRP), supported Cambodia’s entry into the US$120 billion currency swap pool among ASEAN member countries, China, Japan and South Korea.
Chheang Vun, chairman of the National Assembly’s Foreign Affairs Commission, said that the objective of the initiative is to finance short-term liquidity difficulties in the region, to supplement the existing international financial arrangements and to address balances of payments.
Cambodia has contributed a promissory note worth $120 million to the fund. The country would be able to borrow $600 million from the body if a financial crisis occurred.
“Together we will demonstrate the solid commitments of ASEAN+3 members to further enhance regional capacity and safeguard against risks and challenges in the global economy,” said Chheang Vun.
“It will build confidence among investors in the region.”