The Chiang Mai Initiative Multilateralization
The Chiang Mai Initiative Multilateralization (CMIM) is a multilateral currency swap arrangement among the ten members of the Association of Southeast Asian Nations (ASEAN), the People’s Republic of China (including Hong Kong), Japan, and South Korea.
After 1997 Asian Financial Crisis, ASEAN member countries started this initiative to support regional reserves and to facilitate the work of other international financial arrangements and organizations like International Monetary Fund.
The initiative began as a series of bilateral swap arrangements of members` central banks after the ASEAN countries met on 6 May 2000 in Chiang Mai, Thailand, while the annual meeting of the Asian Development Bank. So it was named after the town Chiang Mai Initiative (CMI).
In 2009 bilateral swap mechanism was found inefficient. March 24, 2010 it became multilateral and from now on it is called Chiang Mai Initiative Multilateralization (CMIM).
Key role in governing CMIM lies upon Central Banks of its member countries.
Member countries are: Brunei, Cambodia, Hong Kong, Indonesia, Japan, Laos, Malaysia, Myanmar, the People`s Republic of China, Philippines, Singapore, South Korea, Thailand, Vietnam.
CMIM`s capital draws from a foreign exchange reserves pool worth US$120 billion and was launched on 24 March 2010. That pool has been expanded to US$240 billion in 2012.