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Japan, China, Korea, ASEAN to expand currency swap program, Nikkei says

Published: 01 May. 2025, 11:37 Updated: 01 May. 2025, 18:21

Bank of Korea in central Seoul on March 23, 2022. [YONHAP]

Japan, China, Korea and Asean countries are expected to expand their emergency currency swap program as early as this month to include infectious disease outbreaks and natural disasters, Nikkei Asia reported on Thursday.

A currency swap arrangement known as the Chiang Mai Initiative, created after the Asian financial crisis from 1997 to 1998, exists to support regional financial stability by allowing members to tap currency swap lines to support currencies in need.

The expansion came as some countries faced foreign currency shortages during the Covid-19 pandemic, Nikkei said.

The members of the initiative are likely to agree on the expansion when their representatives meet in Milan, Italy, on Sunday, Nikkei said, adding that the change would likely take effect in May.

The Chiang Mai Initiative pool amounts to $240 billion in foreign exchange reserves, with Japan and China each contributing $76.8 billion, Korea providing $38.4 billion and the 10 Association of Southeast Asian Nations members a combined $48 billion.

Reuters