In 2004, ASEAN-3 countries proposed an expanded framework for liquidity assistance, focusing on the multilateralization of the IJC (CMIM). CMIM is a multilateral currency swap agreement between the 10 members of the Association of South Asian Nations (ASEAN), the People`s Republic of China (including Hong Kong), Japan and South Korea, for a total of $240 billion, which is governed by a single contractual agreement, while the IJC is a network of bilateral exchange agreements between the authorities of the plus three and ASEAN 54. CMIM is a multilateral currency exchange agreement of ASEAN, South Korea, China and Japan. At CMIM, South Korea can withdraw $38.4 billion in the event of signs of a financial or currency crisis. On 3 May 2012, the 15th meeting of ASEAN-3 finance ministers and central bank governors was held in Manila, Philippines, at which an agreement was reached to extend CMIM from the current $120 billion to $240 billion. ASEAN-3 also approved the adoption of the CMIM Precautionary Line (CMIM-PL), modelled on the IMF`s PPL programme to avert the financial crisis. In addition, the IMF`s share of the IMF will increase from 20 per cent to 30 per cent and will increase with its future target of reaching 40 in 2014. With regard to the expanded financing of CMIM, countries can now receive up to $30 billion. [21] At the height of the 1997 Asian financial crisis, the Japanese authorities proposed an Asian Monetary Fund to serve as a regional version of the International Monetary Fund (IMF). But the idea was put on hold after strong opposition from the United States. [4] Following the crisis, the finance ministers of members of the Association of Southeast Asian Nations (ASEAN), the People`s Republic of China, Japan and South Korea met on 6 May 2000 for the 33rd annual meeting of the Asian Development Bank (AfDB) Governing Council in Chiang Mai , Thailand, to discuss the creation of a network of bilateral currency agreements. [5] The proposal was dubbed the Chiang Mai Initiative and was designed to prevent a recurrence of the Asian financial crisis in the future. It also involved the possibility of setting up a pool of foreign exchange reserves accessible by participating central banks to combat monetary speculation.

[6] The proposal would also supplement the financial resources of international institutions such as the IMF. [7] [8] The Joint Ministerial Declaration (JMS) was issued after the meetings of ASEAN-3 finance ministers mentioned the evolution of the IJC. [9] The Ministry of Economy and Finance said on 23 June that the 27 member organisations of the 13 CMIM member countries signed on 16 June to enter into force on 23 June. Under the agreement, each Member State can provide its currency in exchange for the US dollar, if necessary and within a predetermined range. A revised agreement of the Chiang Mai Multilateral Initiative (CMIM) came into force on 23 June.