Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - $120bn East Asian liquidity fund opens

$120bn East Asian liquidity fund opens

$120bn East Asian liquidity fund opens

A US$120 billion currency swap arrangement between all 10 ASEAN countries, China, Japan and South Korea went into effect Wednesday, aimed at providing liquidity in times of crisis.

The Chiang Mai Initiative Multilateralisation (CMIM) agreement aims to address balance of payment and short-term liquidity difficulties in the region, and to supplement the existing international financial arrangements, according to a joint statement Wednesday from the Asian neighbours.

The CMIM, which stems from a December 2009 agreement, will provide financial support through currency-swap transactions among its participants in times of liquidity need, according to the statement.

“The successful launch of the CMIM, together with an independent regional surveillance unit to be established, demonstrates the solid commitments and concerted efforts of ASEAN+3 members to further enhance regional capacity to safeguard against downside risks and challenges in the global economy,” the statement said.

Each country can swap its local currency for US dollars in an amount previously contributed, times a purchasing multiplier, it added.
Cambodia can access up to $600 million in currency, according to the structure of the agreement.

Tal Nay Im, director general of the National Bank, said Wednesday that Cambodia had joined the fund to access liquidity in times of future crisis.
“For Cambodia, at the moment, we do not need any liquidity,” she said.

China, Japan and South Korea together contributed 80 percent of the fund, or $96 billion.

Indonesia, Thailand, Malaysia and Singapore contributed $4.77 billion each, and the Philippines contributed another $3.68 billion. Vietnam gave $1 billion, Cambodia $120 million and Myanmar $60 million, followed by Brunei and Laos at $30 million each.


  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australian police investigating death threat against Kem Ley's widow

    Updated: 10:17am, Friday March 23, 2018 Australian authorities on Thursday confirmed they have launched an investigation into a crudely written death threat sent tothe family of slain political analyst Kem Ley and Victoria state MP Hong Lim. The typed letter, reported to Victoria police last week, is

  • Apparel groups including H&M and Gap urge Cambodia garment industry reform, seek meeting with Hun Sen

    A group representing some of the largest apparel brands in the US and Europe – including Gap, H&M and ASOS – expressed “growing concern” on Tuesday over several controversial labour laws and ongoing court cases against unionists described as restrictive and unjust. In an open letter

  • Cambodia, states clash at UN session

    Cambodia traded shots with the international community in a heated exchange at the UN Human Rights Council in Geneva on Thursday evening, with states condemning the Kingdom’s ongoing crackdown on the political opposition and civil society, and an increasingly agitated Cambodia accusing member states