Assessing the Readiness of the Chiang Mai Initiative Multilateralization: Can It Effectively Address Future Crises?

Suk Hyun and Seong-Hoon Kim ()
Additional contact information
Suk Hyun: Yonsei University, Mirae Campus, Wonju, Republic of Korea
Seong-Hoon Kim: Yonsei University, Mirae Campus, Wonju, Republic of Korea

Asian Development Review (ADR), 2025, vol. 42, issue 03, 201-216

Abstract: This study evaluates the effectiveness of the Chiang Mai Initiative Multilateralization (CMIM) in safeguarding financial stability among members of the Association of Southeast Asian Nations (ASEAN) plus Japan, the People’s Republic of China, and the Republic of Korea—particularly in response to the coronavirus disease pandemic. Despite its intended role as a regional financial safety net, the CMIM has had minimal impact on reducing foreign reserve accumulation and was not activated during the pandemic, raising concerns about its operational viability. Our analysis highlights significant disparities between the region’s ASEAN and non-ASEAN economies, with ASEAN members exhibiting a stronger inclination toward reserve accumulation. While the CMIM may serve as a psychological buffer, its role in mitigating financial instability remains limited. These findings underscore the need for a comprehensive reassessment of the CMIM’s structural framework, operational mechanisms, and overall effectiveness in addressing future crises. This study is among the first to provide an empirical evaluation of the performance of the CMIM during a global crisis and presents policy recommendations to enhance regional financial cooperation and crisis responses in Asia.

Keywords: ASEAN+3; CMIM; COVID-19; financial stability; foreign reserves; regional financial arrangements (search for similar items in EconPapers)
JEL-codes: F02 F31 F33 F36 F65 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0116110525500246
Open Access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:adrxxx:v:42:y:2025:i:03:n:s0116110525500246

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0116110525500246

Access Statistics for this article

Asian Development Review (ADR) is currently edited by Tetsushi Sonobe

More articles in Asian Development Review (ADR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().