ASEAN, China, Japan and South Korea should double the Chiang Mai Initiative emergency fund to $240bn, said South Korea's Minister of Strategy and Finance Yoo Jeung-Hyun on Friday.
The Chiang Mai Initiative Multilaterilzation was launched in March 2010 and currently draws upon a pool of $120 billion in foreign reserves to back a multilateral system of currency swaps that can be triggered if a member faces a currency crisis. The programme began as a series of bilateral swap agreements in the wake of the Asian Financial Crisis in 2000, and has since evolved considerably.
China and Japan each contributed $38.40 billion, or 32% of the fund, while South Korea contributed $19.20 billion, or 16%. The remaining $24 billion, or 20%, came from the Asean members.
S Korea Minister: Asean+3 Should Expand Chiang Mai Initiative To Over $240 Billion [Dow Jones, 11 Feb 2011]
S.Korea proposes doubling E.Asia emergency fund [Reuters, 11 Feb 2011]