User:Izsally/sandbox

Foundation of CMI was meant to expand bilateral swaps of ASEAN. In addition, it was to aid the existing financial facilities of IMF. Nonetheless, an incident in 2008 proved that CMI was not working up to its expectation and was in need of further development. The incident that led to creation of Chiang Mai Initiative Multilateralization (CMIM) was the 2008 Lehman shock, also known as largest bankruptcy in the U.S history. (Bankruptcy of Lehman Brothers) Instead of seeking for a way with CMI, Korea and Singapore used US Federal Reserve as their way of securing, and Indonesia sought for help from the World Bank. Consequently, people realized that CMI needs a reserve pooling arrangement and took actions to multilateralize the initiative. Hence, CMIM was founded.