ASEAN currency swap scheme

ASEAN currency swap scheme

BANDAR SERI BEGAWAN (Reuters): A recently expanded $1 billion currency swap scheme set up by Southeast Asian nations could be increased even further with the participation of Japan, China and South Korea, a Thai official said on Saturday.

Under an existing arrangement, any country in the Association of South East Asian Nations (ASEAN) which finds itself short of foreign reserves would be able to borrow from its partners to absorb what it considered to be unjustified selling pressure on its currency, without having to resort to a devaluation.

Bank of Thailand Deputy Governor Pakorn Malakul Ayudhya told Reuters that Japan had called a meeting with the six founding ASEAN members, China and South Korea to discuss pacts that would offer similar swap arrangements on a bilateral basis.