28.04.201700:08:00UTC+00Japan Seeks Currency Swap Scheme with ASEAN Countries

Japan intends to lay the foundation for bilateral currency swaps with Asian countries to hedge against limited fund supplies and offset the rise of the Chinese yuan.

The country's finance ministry seeks to present the plan soon, hoping it will make the currencies and financial systems of ASEAN countries much stable. The first discussions will include Indonesia.

Japan's finance leader and the BOJ head will set meetings with ASEAN members. It will coincide with the ADB's yearly convention in Yokohama scheduled next month.

The move comes as Asian nations want to detach themselves off the US dollar, with Japan targeting the yuan's surge.

Data by IMF show the yen comprises 4.21% of foreign currency holdings by nations, surpassing the yuan's 1.07%. China, however, is exerting all efforts to make its currency globalized.