Conception File:Horst Köhler.jpg|thumb|Former IMF Managing Director Horst Köhler: "Our advice [to the East Asian region] is to pursue regionalisation, not in opposition to the IMF, because the IMF is a global institution, but to do it in a complementary fashion". At the height of the
1997 Asian financial crisis, Japanese authorities proposed an
Asian Monetary Fund, which would serve as a regional version of the
International Monetary Fund (IMF). However, this idea was shelved after encountering strong resistance from the United States. After the crisis, 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 at the 33rd Annual Meeting of the Board of Governors of the
Asian Development Bank (ADB) in
Chiang Mai,
Thailand, to discuss the establishment of a network of bilateral
currency swap agreements. The proposal was dubbed the Chiang Mai Initiative and intended to avoid a future recurrence of the
Asian Financial Crisis. It also implied the possibility of establishing a pool of
foreign exchange reserves accessible by participating central banks to fight currency
speculation. The proposal would also supplement the financial resources of international institutions such as the
IMF. Joint Ministerial Statement (JMS) was issued after the ASEAN+3 Finance Minister's Meetings have mentioned the development of the CMI. Early critics questioned the reasoning behind the initiative. The
Asia Times Online wrote in an editorial published several days after the meeting, "The idea that the existence of a currency swap arrangement or the wider concept of an
Asian monetary fund [...] could have prevented the Asian crisis or the worst of it, is both wrong and politically noxious." After IMF Managing Director
Horst Köhler visited five Asian nations, including Thailand, in June 2000, the
Asia Times Online denounced his endorsement of "the ill-conceived and likely never to be implemented Asean plus three [...] currency-swap plan". In a 2001 interview with the
Far Eastern Economic Review, Köhler stated that the CMI would promote regional economic co-operation and development and that he would not oppose the formation of an Asian Monetary Union.
Multilateralisation In May 2007, at the 10th meeting of ASEAN+3 Finance Ministers the CMI further progress was agreed upon. Foundation of CMI was meant to expand bilateral swaps of ASEAN. In addition, it was to aid the existing financial facilities of IMF. Nonetheless, the
2008 financial crisis proved that the CMI was not working up to its expectation and was in need of further development. Instead of seeking for CMI liquidity provision, Korea and Singapore used the US Federal Reserve as their way of securing liquidity, and Indonesia sought support from China and Japan. Consequently, policy-makers realised that the CMI needed a reserve pooling arrangement and took action to multilateralise the initiative. Hence, the Chiang Mai Initiative Multilateralisation (CMIM) Agreement was founded in 2009. In February 2009, ASEAN+3 agreed to expand the fund to $120 billion up from the original level of $78 billion proposed in 2008. During the April 2009 meeting of ASEAN finance ministers in
Pattaya, Thailand, the individual contributions to be made by each member state toward the reserves pool were announced. Each of the six original ASEAN members—Indonesia, Malaysia, Singapore, the Philippines, and Thailand—agreed to contribute US$4.77 billion, while each of the remaining four members would contribute between US$30 million and US$1 billion. The ten countries were scheduled to meet their partners following the finance ministers' meeting, but the summit's cancellation due to the
Thai political crisis delayed the launch of the multilateral agreement to a later date. When leaders of the thirteen countries finally met in
Bali in May, they finalised the individual contributions of China, Japan, and South Korea. This summit also added
Hong Kong as a new participant, whose contribution was added to that of China though Hong Kong remained "a monetary administration on its own". Its participation raised China's total contribution to US$38.4 billion, equal to that of Japan, and South Korea, which agreed to contribute US$19.2 billion. China and Japan remain the biggest contributors, each contributing 32 percent of total financial contributions. Including Korea, these three countries account for 80 percent of all the contributions made to CMIM while the remaining 20 percent is from ASEAN countries. On 3 May 2012, 15th ASEAN+3 Finance Ministers and Central Bank's Governors’ meeting was held in Manila, Philippines which made an agreement about expanding CMIM from current $120 billion to 240 billion. The ASEAN+3 also agreed to adopt the CMIM Precautionary Line (CMIM-PL), which is designed on the model of PPL program within the IMF to prevent the
financial crisis. In addition, IMF de-linked portion is raised from 20 percent to 30 percent and with its future goal of reaching 40 in the year 2014. Regarding the expanded funding of CMIM, countries now can receive up to $30 billion. The Chiang Mai Initiative Multilateralisation (CMIM) Agreement was signed on 28 December 2009, and took effect on 24 March 2010. == Participants ==