BNM: Asean Central Banks renew swap arrangement


PETALING JAYA: Asean Central Banks and Monetary Authorities have renewed the memorandum of understanding (MoU) on the Asean Swap Arrangement (ASA) for another two years from Nov 17, 2017, to provide a total of US$2 billion in financial support.

ASA was created primarily to provide liquidity support for those experiencing balance of payments difficulties.

Bank Negara Malaysia (BNM) said in a statement, Governor Muhammad Ibrahim signed the MoU today on behalf of the central bank at the sidelines of the International Monetary Fund (IMF) annual meetings in Washington.

Established in 1977, BNM said the ASA signifies a long-standing tradition in Asean financial co-operation.

“ASA is part of the regional initiatives to promote financial stability through the provision of short-term liquidity support for member countries which are experiencing temporary balance of payment difficulties,” BNM added.

Current Asean members include Malaysia, Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

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