ASIATODAY.ID, JAKARTA – ASEAN Plus Three member countries have agreed to establish a Rapid Financing Facility (RFF) under the Chiang Mai Initiative Multilateralization (CMIM).
Head of the Communications Department of Bank Indonesia (BI) Erwin Haryono said that the formation of the RFF aims to provide liquidity to countries that have balance of payment (BOP) needs due to external shocks.
On the same occasion, member countries also agreed to reduce the CMIM average margin to strengthen the CMIM feature.
This was stated in the Co-Chairmanship discussion between Indonesia and Japan, which was held between BI, the Indonesian Ministry of Finance, Japan Ministry of Finance, and the Bank of Japan at the ASEAN Plus Three forum with the ASEAN Plus Three Finance and Central Bank Deputies Meeting (AFCDM +3 ) on December 6-7, 2023 in Kanazawa, Japan.
“There is also strengthening of the ASEAN Plus Three Macroeconomic Research Office [AMRO] as an organization whose function is to monitor the macroeconomic conditions of ASEAN Plus Three member countries by preparing a holistic study of AMRO Senior Management, especially for the addition of one Deputy Director position,” he said in a press release, Monday, December 11, 2023.
Erwin explained that the co-chairmanship of Indonesia and Japan in 2023 will prioritize several main agendas designed to help member countries face increasingly challenging global economic challenges in the future.
Therefore, member countries see the increasing need for a strong Regional Financial Safety Net supported by a strong AMRO organization.
Meanwhile, in the discussion led by Deputy Governor of Bank Indonesia Filianingsih Hendarta, Erwin said there was also an agreement to form a roadmap of Regional Financing Arrangement.
This roadmap includes a work plan for 2024-2026 regarding the details of developing the new financing facility and new financing structure. (AT Network)
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