Document Type

Case Study

Case Series

Central Bank Swap Lines


In 2010, following the Global Financial Crisis of 2007–2009, 13 Asian countries (including Hong Kong, China) introduced the Chiang Mai Initiative Multilateralization (CMIM) to significantly expand the ability of member countries to provide liquidity to each other to address potential liquidity or currency crises. The agreement created a USD 120 billion multilateral currency swap arrangement among the 10 member countries of the Association of Southeast Asian Nations (ASEAN), plus China, Japan, and South Korea. It replaced the network of bilateral swap agreements (BSAs) under the original Chiang Mai Initiative that the same 13 countries launched in 2000. The CMIM transformed the CMI’s BSAs into a single multilateral agreement wherein each member pledged financial contributions, for a total pool of USD 120 billion; these resources can then be mobilized to extend US dollar swaps to CMIM members during a crisis. Participants’ contributions vary, generally according to a country’s size, with the three non-ASEAN countries providing 80% of the total. Member countries can request US dollar swaps up to a multiple of their contribution, with larger multiples assigned to smaller countries. Participants wishing to borrow more than 20% of their maximum allocation amount are required to participate in an International Monetary Fund (IMF) program. The member countries later expanded the pool to USD 240 billion and raised the non-IMF-linked amount to 40%. The CMIM has not been used as of mid-2023