In evaluating the RFSN, I would like to include the Asian Bond Market Initiative (ABMI) together with the CMIM and the AMRO as they were launched to address the same root causes of the AFC, i.e., how to resolve the double mismatch problem in Asia and improve recycling of Asia’s savings within the region.
In last two decades, the CMIM has made significant progress such as doubling its lending capacity, introducing the CMIM Precautionary Line, increasing the IMF de-linked portion, and extending program maturities. Despite all the progress, however, no country has turned to this facility and its effectiveness has not yet been market-tested.