Japan proposed a new type of bilateral currency swap arrangement with the Association of Southeast Asian Nations on Friday that would provide up to $40 billion for short-term liquidity crunches during times of crisis.
The proposal — made during a session between the Japanese and ASEAN finance leaders at the Asian Development Bank's 50th annual meeting in Yokohama — also includes provisions that allow countries to withdraw yen funds under existing bilateral currency swap agreements, a joint statement released after the gathering said.
"Facilitating the funding of yen in ASEAN will contribute to further regional financial stability," the statement said.