The impacts of COVID-19 on financial stability and regional financial safety nets in ASEAN

The Association of Southeast Asian Nations (ASEAN) is making strong efforts to maintain financial stability amid the coronavirus disease (COVID-19) pandemic, mostly through national financial emergency measures for each member state. As a region, ASEAN has not yet formed a regional financial safety net to deal with a crisis like COVID-19.


Like other regions affected by the outbreak of COVID-19, ASEAN member states (AMS) are seeing a large number of confirmed cases. According to data from the World Health Organization (WHO), daily new cases in some AMS have been rising, although the pace is decelerating (Table 1). The spread of COVID-19 across the region has caused economic downturns and even stopped some economic activities, resulting in negative spillover effects on the region’s financial stability. International reserves may be deteriorating, and external debt could rise as government spending shoots up due to the launch of large stimulus packages. [FULL REPORT]

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