ASIATODAY.ID, JAKARTA – The meeting of Ministers of Finance and Governors of Central Banks of ASEAN Plus Three Member Countries (AFMGM+3) is committed to responding to the dynamics of potential global economic risks, one of which is by strengthening regional financial safety nets.
The AFMGM+3 meeting which was held in Tbilisi, Georgia, was attended by Deputy Governor of Bank Indonesia Filianingsih Hendarta, representing Bank Indonesia Governor Perry Warjiyo.
At the meeting, Filianingsih appreciated the role of ASEAN Plus Three countries and the ASEAN Macroeconomic Research Office (AMRO) in efforts to continue to strengthen international and regional financial safety nets.
“This is crucial for ASEAN Plus Three countries in facing global economic conditions which are full of uncertainty,” he said, citing an official statement, Sunday, May 5 2024.
He also welcomed the ASEAN Plus Three agreement regarding the establishment of the Rapid Financing Facility (RFF) and efforts to transition the Chiang Mai Initiative Multilateralization (CMIM) financial structure towards a more robust and reliable model so that it can guarantee certainty of financing, especially when facing crisis conditions.
Filianingsih said that various results from the AFMGM Plus Three meeting were brought to the Co-Chairmanship of South Korea and Laos in 2024, which made progress, which was the idea of Indonesia and Japan in Co-Chairmanship in 2023.
Meanwhile, the Indonesian and Japanese co-chair heritage initiatives include;
First, it was agreed to establish a Rapid Financing Facility (RFF), namely an additional financial safety net in the area under the current facility, namely CMIM. It is believed that the RFF facility can strengthen and support the resilience of the ASEAN Plus Three region by increasing access to liquidity in US dollars, renminbi and Japanese yen during periods of immediate balance of payment requirements due to external pressures, including natural disasters and pandemics.
Second, agreement regarding the importance of CMIM reform to strengthen regional financial safety nets. This reform is carried out through exploring the financing structure of financial facilities in the ASEAN Plus Three region so that it is effective in preventing, mitigating and resolving crises in the future.
Third, reducing the cost of financial facilities or CMIM’s average margin, which is expected to make regional financial safety net facilities more affordable for member countries. This shows the strong commitment of ASEAN Plus Three member countries in supporting economic and financial stability in the region. (AT Network)
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