Regional Financial Arrangements in East Asia
Regional Financial Arrangements (RFAs) in East Asia emerged in response to the Asian Financial Crisis (AFC) of 1997–1998, which revealed significant vulnerabilities in the region’s financial safety nets. In 2000, the Chiang Mai Initiative (CMI) was launched, establishing a network of bilateral swap arrangements (BSAs) among ASEAN+3 member economies (China, Japan, and South Korea). While this arrangement represented a pioneering step toward regional financial cooperation, its design was limited by the absence of a dedicated economic surveillance mechanism and a lack of institutional capacity.