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.