ABSTRACT
In August 2003, the ASEAN+3 (Japan, China, and Korea) Financial Ministers have established Asian Bond Markets Initiative (ABMI), which aimed to develop efficient and liquid bond markets in Asia. The ABMI has been promoting to issue local currency denominated bonds to contribute to mitigation of currency and maturity mismatches in financing regional borrowers. To further contribute to the development of deeper and more liquid regional bond markets, the Financial Ministers agreed to take some measure at the ASEAN+3 Finance Ministers’ Meeting in May 2005 in Istanbul, Turkey. One of the agreements is to launch a study on Asian currency basket bond.
