Central Banks and Monetary Authorities of the original five Association of Southeast Asian Nations (ASEAN) - Indonesia, Malaysia, Philippines, Singapore, and Thailand - agreed to establish reciprocal currency or swap arrangements in August 1977. The ASEAN Swap Arrangement (ASA) was created primarily to provide liquidity support for those experiencing balance of payments difficulties.

The duration, coverage, and amount of the ASA have expanded markedly since its inception. Originally intended to be in effect for just one year, the arrangement has been extended incrementally. The Chiang Mai Initiative (CMI), announced at the ASEAN+3 Finance Ministers’ Meeting in May 2000, expands ASA to all current ASEAN members. In November 2000, the total amount available for swap transactions under ASA was increased from US$200 million to US$1 billion. In May 2005, during the 8th ASEAN+3 Finance Ministers’ Meeting, the total amount for the ASEAN Swap Arrangement was further doubled to US$2 billion.