1978 Supplementary Agreement to the Memorandum of Understanding of the ASEAN Swap Arrangements

ASA 1st Supplementary Agreement

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  • ASEAN Economic Community
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Refer to 1977 Memorandum of Understanding on the ASEAN Swap Arrangement, Article IX Dispute:
“Any dispute or problem arising from the implementation of the Arrangement shall be resolved through consultations among the participants, initiated by the Agent Bank.”

Text of agreement

05/08/1978

05/08/1979

“Article IV:
This Supplementary Agreement shall be deemed to have come into force on August 5, 1978.”

“ARTICLE III:
Article X of the Memorandum is hereby amended by substituting therefor the following.

ARTICLE X
DURATION OF THE ARRANGEMENT
The Arrangement shall remain in force and effect for a period of one year from the date this Supplementary Agreement comes into force, subject to renewal upon agreement by the participants. The Agent Bank shall, at least two months before the expiry date hereof, initiate consultations for renewal of the Arrangement. In the event of termination of the Arrangement the provisions thereof shall be considered still in force, but only in respect of the settlement of outstanding balances existing at the time of such termination.”

1977 Memorandum of Understanding on the ASEAN Swap Arrangements

1979 Second Supplementary Agreement to the Memorandum of Understanding on ASEAN Swap Arrangement

1981 Amendments to the Memorandum of Understanding on the ASEAN Swap Arrangement

1982 Third Supplementary Agreement to the Memorandum of Understanding on the ASEAN Swap Arrangements

1987 Fourth Supplementary Agreement to the Memorandum of Understanding on ASEAN Swap Arrangement

1992 Fifth Supplementary Agreement to the Memorandum of Understanding on the ASEAN Swap Arrangement

1997 Sixth Supplementary Agreement to the ASEAN Swap Arrangement

2005 Memorandum of Understanding on the ASEAN Swap Arrangement

2000 Chiang Mai Initiative

ASEAN accessed on 04/10/2022

The ASEAN Swap Arrangement forms the basis of the 2000 Chiang Mai Initiative (CMI), a currency swap mechanism involving the ASEAN+3 member states (ASEAN, China, Japan, Republic of Korea). The initiative comprises the ASEAN Swap Arrangement and a network of separately negotiated bilateral and multilateral swap agreements.

It is likely that the 2000 Memorandum of Understanding on the ASEAN Swap Arrangement (text unavailable) superseded the 1977 MOU and its Supplementary Agreements. The 2005 Memorandum of Understanding on the ASEAN Swap Arrangement also definitively provides that:

“Article III: Date of Coming Into Force

3.1 The Arrangement shall come into force on 17 November 2005. This Arrangement contains all the terms and conditions of the agreement between the participating members with respect to the subject matter hereof and supersedes all previous arrangements, agreements and commitments whatsoever, whether oral or in writing. The Second Supplemental Memorandum of Understanding on the ASEAN Swap Arrangement dated 17 November 2004 is hereby terminated with the effect from 17 November 2005.”

Lao PDR acceded to the 1977 MOU, the 1-6th Supplemental Agreements and the 1981 Amendment via the 1997 Second Protocol for the Accession of the Lao People’s Democratic Republic to ASEAN Agreements. As of this update CIL staff have no information on the participation in the 1977-2000 ASEAN Swap Arrangement by Brunei Darussalam, Viet Nam, Myanmar or Cambodia.