On May 3, 2024, in Tbilisi, Georgia, a delegation of the State Bank of Vietnam (SBV) led by the Deputy Governor Dao Minh Tu attended the 27th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM+3). This was an opportunity for the ASEAN+3 Central Bank Governors and Finance Ministers to meet, discuss and come up with orientations for the cooperation within the framework of the ASEAN+3 financial and banking integration process.
The 27th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting
Participating in the meeting, there were senior leaders from the Central Banks, the Monetary Authorities, the Ministries of Finance of the ASEAN+3 members, the Director of the ASEAN+3 Macroeconomic Research Office (AMRO), the President of the Asian Development Bank (ADB), the Deputy CEO of the International Monetary Fund (IMF), the Secretary-General of the ASEAN Secretariat.
The macroeconomic situations in the region and around the world
The representatives of the international organizations shared about macroeconomic developments and outlooks of the region and around the world. According to the IMF’s assessments, the global economy is expected to recover, but the recovery will be uneven across the economies, with the average growth rate projected at 3.2% in 2024 (0.2% higher than the forecast made in October 2023). The global inflation will likely decrease in 2024 and 2025, while the public debts will likely increase, and the global outlook is quite dim, at its lowest level in the past two decades. In that context, according to AMRO’s forecast, Asia will continue to be the locomotive for the global growth, with the projected growth rate reaching 4.5% in 2024, and 4.3% in 2025.
At the Meeting, the ASEAN+3 Central Bank Governors and Finance Ministers shared about the macroeconomic situations and the challenges in managing the macro policies in their respective countries. In that context, the ASEAN+3 Central Bank Governors and Finance Ministers recommended a number of policy solutions for the region, including: Maintaining and developing the multilateral trade forums and mechanisms based on free, fair, transparent and non-discriminatory principles to facilitate free trade movements, reducing non-tariff barriers, limiting the protectionism, and strengthening the integration and cooperation trends for sustainable development; Promoting green and sustainable development through a fair transition process based on promoting the central role of the region and attracting the participation of the relevant parties; Enhancing the proactive and positive role of the international organizations in the macroeconomic oversight through such activities as technical assistance and policy advice; Taking advantage of the development trends of science, technology and digitalization to promote the economic growth, however, it is necessary to pay attention to the cybersecurity and encourage the youth involvement.
The ASEAN+3 finance and banking integration process
At the Meeting, the ASEAN+3 Central Bank Governors and Finance Ministers discussed about several initiatives for enhancing the readiness of the Chiang Mai Initiative Multilateralization (CMIM) to promptly support the CMIM members to remove the difficulties in the balance of payments and the liquidity, thereby implementing the goal of achieving monetary and macroeconomic stability.
The Meeting adoped the establishment of a Rapid Financing Facility (RFF) within the CMIM framework to diversify the support facilities for the CMIM members in case they have to face an external shock, such as a natural disaster or an epidemic outbreak. The Meeting also welcomed the completion of the 14th CMIM test run with real money in September 2023.
In addition, the Meeting also discussed about initiatives for strengthening and expanding the ASEAN+3 financial cooperation on other topics, including sustainable infrastructure, green development, and financial technology (Fintech), etc.
Toward the end of the Meeting, the ASEAN+3 Central Bank Governors and Finance Ministers adopted by consensus the Joint Statement of the 27th AFMGM+3.
The AFMGM+3 in 2025 will be held in Milan, Italy, under the co-chair of Malaysia and the People’s Republic of China.
HY