Japan will propose a new currency swap framework with its Asian neighbour countries to avert a financial meltdown in the region, a daily said Saturday.
Japan plans to make the proposal in May, when finance ministers of the Association of the Southeast Asian Nations (AEASN) as well as China and South Korea meet, the Asahi Shimbun said.
Under the system, tens of billions of dollars would be swapped to prop up the currencies of China, South Korea and ASEAN nations when they appear on the verge of plummeting, they said.
The framework will complement the 2002 Chiangmai Initiative in which ASEAN, Japan, China and South Korea agreed to form a network to support each other in case of a financial crisis in the region.
Japan is confident of winning support for the proposal. "There is no reason for objection to the proposal," a finance ministry official was quoted by the daily as saying.