ASEAN+3 Finance Deputy Ministers' Meeting Held, Agree to Cooperate on Infrastructure Investment and Climate Change Response

Discussion on Measures to Enhance CMIM Effectiveness and Regional Financial Cooperation

[Asia Economy Reporter Jang Sehee] The Deputy Ministers of Finance and Deputy Governors of Central Banks from Korea, China, and Japan, along with the ASEAN+3 (Korea, China, Japan) Deputy Ministers of Finance and Deputy Governors of Central Banks meeting, were held virtually on the 25th. They agreed to strengthen support for infrastructure investment and cooperate on climate change response going forward.

Deputy Ministers of Finance and Deputy Governors of Central Banks from Korea, China, Japan, and the 10 ASEAN countries, as well as key officials from the International Monetary Fund (IMF) and the ASEAN+3 Macroeconomic Research Office (AMRO), attended to discuss measures to enhance the effectiveness of the Chiang Mai Initiative Multilateralization (CMIM) and regional financial cooperation.

In particular, Korea, as the chair country of the Korea-China-Japan financial cooperation this year, presided over the Korea-China-Japan Deputy Ministers of Finance and Deputy Governors of Central Banks meeting, emphasizing that close cooperation among member countries must continue to enhance regional financial stability.

At the CMIM Multilateralization meeting, discussions continued on revising subsidiary regulations, including the use of regional currencies when providing CMIM financial support and preparing alternative reference rates following the abolition of the LIBOR rate. The revision of subsidiary regulations is planned to be completed by the end of this year.

Member countries of the regional macroeconomic research organization approved the '2021 Organizational Plan and Annual Consultation Improvement Plan,' focusing on strengthening analysis and policy recommendation functions for member countries' economies, and recommended continuous efforts for AMRO to become a trusted policy advisor in the region.

Korea requested effective policy recommendations from AMRO so that regional member countries can proactively respond not only to overcoming the COVID-19 economic and health crisis but also to structural changes caused by COVID-19, such as digitalization.

ASEAN+3 plans to establish and operate four working groups focused on strengthening infrastructure investment support, expanding support for structural issues, cooperating on climate change response, and coordinating policies on technological advancement (Fintech). Korea plans to prepare policy coordination measures for the development of Fintech in the region.

Chief Representative Yoon Tae-sik said, "Proactive response is important to utilize the restructuring of the global value chain as an opportunity," and added, "Regional member countries should share the values of free trade and multilateralism and cooperate closely."

He further added, "It is necessary to utilize the multilateral cooperation platform called RCEP as an important opportunity."

The discussions and decisions from this Deputy Ministers meeting will be finalized at the Korea-China-Japan and ASEAN+3 Ministers of Finance and Central Bank Governors meeting scheduled for May.

This content was produced with the assistance of AI translation services.