In the aftermath of the Asian financial crisis, ministries of finance from the major Asian countries launched the Asian Bond Markets Initiative (ABMI) to avoid the risk of another currency crisis. However, the ABMI does not facilitate currency clearing, especially multi-currency clearing. This chapter proposes a new multi-currency clearing system in Asia. That scheme will clear each currency on a simultaneous base and will be supported by the differing Asian central banks. The architecture for liquidity provision in multiple currencies is the first step for Asian financial integration.
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