Brunei to contribute $43.8m to Asian reserve pool
Tuesday, May 12, 2009
BRUNEI DARUSSALAM will contribute US$30 million ($43.81 million) to a multi-billion regional fund that can be tapped by countries experiencing liquidity problems, according to news reports from the Philippines.
The US$120-billion regional fund was created following an agreement called the Chiang Mai Initiative (CMI) of members of the Association of Southeast Asian Nations (Asean) and its dialogue partners.
Regional partners Japan, China and South Korea will contribute US$96 billion, while the remaining US$24 billion is to be shouldered by the 10 Asean member nations.
The final approval for the amounts was secured from the members of the Asean Plus Three last week, according to a report by BusinessWorld, which cited the Philippine central bank deputy governor Diwa C Guinigundo as saying that the regional fund will be a "self-managed reserve pool", which means that members will get to keep their contributions but will earmark them to the facility when needed.
The fund is expected to be in place by the start of next year.
The CMI was created in response to the 1997 Asian crisis to allow a country experiencing liquidity problems to borrow foreign currency from another to boost its reserves.
The members of Asean Plus Three agreed to expand the CMI and transform it into a multilateral facility. Last February, the region's finance ministers agreed to increase the facility from $80 billion to $120 billion. Hadi DP Mahmud
The Brunei Times
The US$120-billion regional fund was created following an agreement called the Chiang Mai Initiative (CMI) of members of the Association of Southeast Asian Nations (Asean) and its dialogue partners.
Regional partners Japan, China and South Korea will contribute US$96 billion, while the remaining US$24 billion is to be shouldered by the 10 Asean member nations.
The final approval for the amounts was secured from the members of the Asean Plus Three last week, according to a report by BusinessWorld, which cited the Philippine central bank deputy governor Diwa C Guinigundo as saying that the regional fund will be a "self-managed reserve pool", which means that members will get to keep their contributions but will earmark them to the facility when needed.
The fund is expected to be in place by the start of next year.
The CMI was created in response to the 1997 Asian crisis to allow a country experiencing liquidity problems to borrow foreign currency from another to boost its reserves.
The members of Asean Plus Three agreed to expand the CMI and transform it into a multilateral facility. Last February, the region's finance ministers agreed to increase the facility from $80 billion to $120 billion. Hadi DP Mahmud
The Brunei Times
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