ASEAN+3 economic risk monitor opens

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Philippine-stock-market-boardAn international organization assigned to monitor and assess financial and economic risks to member economies of the ASEAN+3 has officially opened.

The ASEAN+3 Macroeconomic Research Office (AMRO) held its opening ceremony in Singapore on February 19.

AMRO was formally accorded the legal status of an international organization on February 9, 2016, when the agreement signed by ASEAN+3 member states to establish the office entered into force.

The first international organization put up by the ASEAN+3, AMRO is headquartered in Singapore and has nearly 40 staff from ASEAN+3 countries.

It is the independent macroeconomic surveillance unit of the Chiang Mai Initiative Multilateralization (CMIM) Agreement, a US$240-billion currency swap arrangement set up in 2010 among the finance ministries and central banks of the ASEAN member states, China, Japan, and South Korea (ASEAN+3 member states) to provide financial support in times of liquidity need.

Essentially, AMRO will offer economic and financial surveillance and analysis of the region to support the effective decision-making of member nations.

Heng Swee Keat, Singapore finance minister, in his speech at the opening ceremony, said AMRO will be of the same standing as the International Monetary Fund (IMF) and other global financial institutions, with which it will collaborate closely.

Heng added that while it is important for the region to maintain the openness of its economies and financial systems to reap the most out of the global marketplace, “at the same time, we must guard against the risks involved.”

He added that AMRO is envisioned to play a crucial role in monitoring the vulnerabilities and risks to the region by conducting comprehensive analyses of the macroeconomic risk areas and policy developments of ASEAN+3 members.

“We look forward to the increased publication of high-quality independent reports, data analyses and economic reviews by AMRO that will guide the policy actions of ASEAN+3 economies,” he stated.

“With the CMIM, we will have three effective layers of the financial safety net—national, regional and multilateral—which will put us collectively in a stronger position to guard against spillovers and contagion risks and foster greater stability in the region.”

As AMRO develops its surveillance capabilities, it will establish an early warning mechanism for emerging risks in the region, and provide robust policy recommendations to avert potential crises, added Heng.

“Our vision is for AMRO to develop into an authoritative interpreter of economic and financial developments in the Asian region.”

Photo: Katrina.Tuliao