Chinese Foreign Minister Yang Jiechi (R) shakes hands with Indian External Affairs Minister S. M. Krishna during the East Asia Summit Foreign Ministers Informal Consultations session in Phuket, Thailand, on July 22, 2009.(Xinhua/Liu Lianfen) Photo Gallery>>>

    PHUKET, Thailand, July 22 (Xinhua) -- Chinese Foreign Minister Yang Jiechi on Wednesday stressed the importance of regional financial cooperation to fend off risks among East Asian nations.

    "We should vigorously intensify cooperation among finance departments, central banks and financial regulatory authorities of the ASEAN Plus Three countries," Yang said at the Association of Southeast Asian Nations, China, Japan and South Korea (ASEAN+3) Foreign Ministers' Meeting.

    A key mechanism for the region to ensure financial stability is the so-called Chiang Mai Initiative Multilateralisation (CMIM), which was set up to address short-term liquidity difficulties in the region.

    "We should continue to promote the CMIM, and strive to conclude the CMIM Agreement and operationalize the Self-managed Reserve Pooling Arrangement (SRPA) before the end of the year," Yang said.

    Finance ministers of the Association of Southeast Asian Nations, China, Japan and South Korea (ASEAN+3) reached in May the agreement on all main components of regional reserve pool, and would implement it before the end of this year.

    The total size of the CMIM is 120 billion U.S. dollars with the contribution portion between the ASEAN and the Plus Three countries at 20 percent versus 80 percent.

    China and Japan will each contribute 38.4 billion U.S. dollars to the pool, while South Korea will contribute 19.2 billion dollars.

    "We should bring into full play the role of the bilateral currency swap agreements and enhance the capacity of countries in the region to fend off financial risks," Yang said.