The Asian Bond Markets Initiative (ABMI) was launched in December 2002 and adopted in August 2003 at the ASEAN+3 Finance Ministers Meeting. It aims to foster the development of local currency (LCY) bond markets as an alternative source of funding to short-term foreign currency loans to avoid the so-called “double mismatch problem.” It also aims to recycle vast savings within the region to support needed infrastructure investments. Through market development, ABMI promotes regional financial cooperation and integration to reduce the region’s vulnerability to the sudden reversal of capital flows and to strengthen its financial resilience and stability.

Currently, there are four task forces under ABMI. Under Task Force 3 (TF3), ABMF is continuing its push for standardization and harmonization of technical standards and bond-market-related regulations. As a platform to collaborate with the private sector, ABMF will promote technologies to improve regulatory reporting and may be able to reduce the regulatory burden. To develop bond markets and increase the recycling of funds within the region, it may be necessary to consider expanding the discussion to include foreign exchange and currency swap market instruments and LCY-to-LCY payments and transactions. It will also discuss new technologies to support cross-border transactions to improve bond markets. ABMF will coordinate with ASEC to enhance the effectiveness of technical assistance. In addition, collaboration with the private sector through ABMF should facilitate the dissemination of knowledge to those economies that need it most.

(Source: Asian Bonds Online, https://asianbondsonline.adb.org/)

About ADB’s Economic Research and Regional Cooperation Department (ERCD)

The Economic Research and Regional Cooperation Department (ERCD) undertakes policy research to foster economic and social development. It comprises four divisions and Office of the Chief Economist and Director General.

• Office of the Chief Economist and Director General (EROD)
• Economic Analysis and Operational Support Division (EREA)
• Macroeconomics Research Division (ERMR)
• Regional Cooperation and Integration Division (ERCI)

The role of the ERCD is to undertake policy research to:

• Generate knowledge on key development issues of critical importance to the region
• Advise on strategic issues that contribute to ADB’s performance
• Support ADB's lending operations, policy dialogue with DMCs, and capacity building activities.

Services Provide by ERCD:

• Macroeconomic monitoring and forecasting
• Operational support to strengthen quality-at-entry for projects
• Analysis of regional economic integration

(Source: Website of Asian Development Bank, https://myadb.adb.org/)