It lent money to financial institutions through the discount window and its close cousin, the Term Auction Facility. It injected liquidity into a broad range of essential credit markets through a veritable alphabet soup of special lending vehicles. In some sense, these interventions were typical for a central bank operating in the context of a financial panic.
Scope for co-operation and co-ordination The Chiang Mai Initiative is a good starting point to build on the various existing initiatives. Although under the present dispensation the CMI is complementary to similar IMF initiatives, it has an important symbolic value in as much as it can signal the markets a regional commitment to supporting any member country’s currency that is under speculative pressures.