The currency swap agreements in east Asia providing mutual protection from financial emergencies could develop into an Asian monetary fund, a leading Japanese proponent of regional financial integration said yesterday.

Agreed after the 1997-98 financial crisis, and known as the Chiang Mai Initiative, the $39bn (€30bn, £20.4bn) in bilateral support arrangements between Japan, China, South Korea and 10 south-east Asian countries are expected to double in value and may be transformed into a multilateral system, Asian finance ministers said on Wednesday.