Exchange rate regimes of ASEAN countries

a critical evaluation by Aleth Yenko

Publisher: Institute of Southeast Asian Studies in Singapore

Written in English
Cover of: Exchange rate regimes of ASEAN countries | Aleth Yenko
Published: Pages: 38 Downloads: 667
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Places:

  • Asia, Southeastern.

Subjects:

  • Foreign exchange -- Asia, Southeastern.

Edition Notes

Bibliography: leaves 36-38.

Statementby Aleth Yenko.
SeriesResearch notes and discussions paper / Institute of Southeast Asian Studies,, no. 30, Research notes and discussions paper ;, no. 30.
Classifications
LC ClassificationsHG3972 .Y46 1982
The Physical Object
Pagination38 leaves ;
Number of Pages38
ID Numbers
Open LibraryOL3155650M
ISBN 109971902346
LC Control Number82941285

the true nature of exchange rate regimes of ASEAN countries and their evolution over time. Since regional economic integration became a priority in the s, the level of integration among ASEAN countries has increased in almost all economic areas (Rillo et al.,Author: Tung Nguyen. 1 W hat to do about exchange rate arrangements is high on the policy agenda of emerging East Asia.1 For decades, export-led growth has been integral to national development strategies in countries. the impact of exchange rate volatility on bilateral trade. Wei [20] estimated a panel of 63 countries and find that exchange rate volatility has a significant negative impact on bilateral trade for country pairs with large potential trade. Rose [21] using a gravity model with a sample of The choice of exchange rate regime among many Asian governments has been driven in large part by countries’ economic growth models, which have favored exports, while path dependence, network externalities, and political rivalry prevented the emergence of regional alternatives to the by: 2.

This page displays a table with actual values, consensus figures, forecasts, statistics and historical data charts for - Foreign Exchange Reserves. This page provides values for Foreign Exchange Reserves reported in several countries part of Asia. The table has current values for Foreign Exchange Reserves, previous releases, historical highs and record lows, release frequency, reported unit. The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July and raised fears of a worldwide economic meltdown due to financial contagion.. The crisis started in Thailand (known in Thailand as the Tom Yum Goong crisis; Thai: วิกฤตต้มยำกุ้ง) on 2 July, with the financial collapse of the Thai baht. Macroeconomic Factors That Influence Exchange Rate Fluctuation in ASEAN Countries Wan Mohd Yaseer Mohd Abdoh1, Noor Hafizha Muhamad Yusuf2, Shaliza Azreen Mohd Zulkifli3, Norhisam Bulot4 and Nor Jamilah Ibrahim5 1,2,3,4Faculty of Business Management, Universiti Teknologi MARA (UiTM), Cawangan Perlis, Kampus Arau, Arau, Perlis, MalaysiaFile Size: KB.   Exchange rates tell you how much your currency is worth in a foreign currency. Think of it as the price being charged to purchase that currency. Foreign exchange traders decide the exchange rate for most currencies. They trade the currencies 24 hours a day, seven days a week. As of , this market trades $ trillion a day.

(a) Fixed and floating exchange rate regimes. One argument that emerged in the course of overcoming the Asian currency crisis is the view that because international capital flows have become very vigorous, the only exchange rate regimes that can be maintained are either freely floating exchange rate regimes or very hard pegs (e.g., currency. Evaluating India’s exchange rate regime under global shocks 1. Introduction The Indian exchange rate regime is a managed float, where the Central Bank (CB) allows markets to discover the level but intervenes to prevent excessive volatility. The range of movement shows considerable variation compared to the pre global financial crisis (GFC File Size: KB. A pegged exchange rate system is a hybrid of fixed and floating exchange rate regimes. Typically, with a pegged exchange rate, an initial target exchange rate is set and the actual exchange rate will be allowed to fluctuate in a range around that initial target rate. Also, given changes in economic fundamentals, the target exchange rate may be. The Mirage of Exchange Rate Regimes for Emerging Market Countries Guillermo Calvo, Frederic S. Mishkin. NBER Working Paper No. Issued in June NBER Program(s):International Finance and Macroeconomics Program, Monetary Economics Program This paper argues that much of the debate on choosing an exchange rate regime misses the boat.

Exchange rate regimes of ASEAN countries by Aleth Yenko Download PDF EPUB FB2

Exchange Rate Regimes of ASEAN Countries. [Aleth Yenko] -- A theoretical framework, based on existing literature, which could serve as a guide for developing countries in choosing an appropriate exchange rate regime in the present system of generalized.

Get this from a library. Exchange rate regimes of ASEAN countries: a critical evaluation. [Aleth Yenko] -- Presents a theoretical framework, based on existing literature, which could serve as a guide for developing countries in choosing an appropriate exchange rate regime in the present system of.

Abstract. The ASEAN countries have experimented contrasted exchange rate regimes since the s. The Asian crisis of has shown the limits of a simple dollar-peg policy without formal institutions. During the s much effort has been devoted to improving monetary and financial cooperation at the regional level, Author: Jacques Mazier, Nabil Aflouk, Myoung Keun On.

Williamson, Exchange Rate Policies in Emerging Asian Countries, eds. Collignon, J. Pisani-Ferry and Y. Park (Routledge, London and New York, ) pp. – Google Scholar J. Williamson, Exchange Rate Regimes for Emerging Markets: Reviving the Intermediate Option (Institute for International Economics, Washington, DC, ).Cited by: 6.

The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. This paper examines exchange rate behavior in the ASEAN-5 countries (Indonesia, Malaysia, the. This paper examines exchange rate behavior in the ASEAN-5 countries (Indonesia, Malaysia, the Philippines, Singapore, and Thailand).

It finds that for the last 10 years there is no evidence that their central banks target particular exchange rate levels against any currency or basket. Thus, contrary to some assertions, they do not belong to a U.S. dollar club, a Japanese yen club, a Chinese Author: Vladimir Klyuev, To-Nhu Dao.

Downloadable. This paper investigates whether the RMB is in the process of replacing the US dollar as the anchor currency in nine ASEAN countries, and also the linkages between the ASEAN currencies and a regional currency unit. A long-memory (fractional integration) model allowing for endogenously determined structural breaks is estimated for these purposes (Gil-Alana, ).Cited by: 3.

Exchange rate linkages between the ASEAN currencies, the US dollar and the Chinese RMB Article in Research in International Business and Finance 44 July with 89 Reads How we measure 'reads'.

US dollar as exchange rate anchor. Antigua and Barbuda Djibouti Dominica Grenada Hong Kong Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines ; Euro as exchange rate anchor. Bosnia and Herzegovina Bulgaria ; Singapore dollar as exchange rate anchor.

Brunei. classification, around eight de facto exchange rate regimes are followed by t he member countries ranging from hard peg to floating regimes. India is f ollowing a managed floating regime.

The policy of fixing the exchange rate of the local currency to the dollar also aggravated the problem. Interest rates in the ASEAN countries have typically been higher than international rates.

With the exchange rate risk absorbed by the central bank, the interest rate differential induced the inflow of both long-term and short-term investments. This conference examined central issues relating to appropriate exchange regimes for the developing Asia Pacific countries.

Four intermediate regimes were more specifically suggested: a flexible exchange rate target (where the band is adjusted in order to stay consistent with the inflation target through the uncovered interest rate parity.

In the fixed exchange rate regime, the central bank maintains the exchange rate at a predetermined and constant level: S t = S − for each t. Therefore, the central bank sets the nominal interest rate in such a way that the uncovered interest rate parity condition holds.

Target zone regimeCited by: 2. the de jure or official exchange rate regimes in various developing and emerging Asian economies.2 Recognizing that countries do not always follow their policy pronouncements, the section also focuses on de facto classifications of Asian exchange rate regimes by the International Monetary Fund (IMF).Cited by: 9.

Choice of exchange rate regimes for developing countries (English) Abstract. The choice of an appropriate exchange rate regime for developing countries has been at the center of the debate in international finance for a long by: evidence suggesting that, despite the more flexible exchange rate regimes subsequently adopted by some Asian countries, the US dollar was still the de facto anchor currency for many of them (e.g., Benassy-Quere et al., ).Cited by: 3.

Fig. 1 shows the changes in the prices and the absolute returns of the normalized bilateral exchange rate for each of the ASEAN-5 countries against the US dollar before, during and after the Asian crisis.

It also demonstrates the extent to which these currencies have recovered in the post crisis by: 5. List of ASEAN countries Author The ASEAN Association of Southeast Asian Nations (ASEAN: The Association of South East Asian Nations) was established on 8 August by Indonesia, Malaysia, Thailand, ASEAN countries, the Philippines and Singapore later in the year.

inBrunei Darussalam has been a member. If the exchange rate is mainly determined in international foreign exchange markets, it’s called a floating exchange rate regime. Exchange rates involving developed countries’ currencies, such as the U.S. dollar, the euro, the pound, the yen, and the Swiss franc, are determined in foreign exchange.

An empirical study of exchange rate regimes based on data compiled from member countries of the International Monetary Fund over the past thirty years. Few topics in international economics are as controversial as the choice of an exchange rate regime.

Since the breakdown of the Bretton Woods system in the early s, countries have adopted a wide variety of regimes, ranging from pure.

Exchange Rate Regimes in the Modern Era: Fixed, Floating, and Flaky by Andrew K. Rose. Published in vol issue 3, pages of Journal of Economic Literature, SeptemberAbstract: This paper provides a selective survey of the incidence, causes, and consequences of a country's choice of.

If the widely fluctuating yen-dollar rate is the root of the problem, Asian countries should peg to a basket of currencies in which the yen carries a substantial weight. If the loss of monetary independence is the major source of instability, allowing the exchange rate to float is recommended.

The inflows of foreign direct investment (FDI) are important for a country's economic development, but the world market for FDI has become more competitive. This paper empirically analyses the exchange rate movements and foreign direct investment (FDI) relationship using annual data on ASEAN economies, that is, Malaysia, the Philippines, Thailand, and by: 8.

It examines whether the exchange rate regimes were a cause of the crisis, or whether the crisis would have emerged under alternative exchange rate regimes. It focuses on the relationship between the exchange rate regime and the recovery process.

It then asks whether exchange controls can help in maintenance of exchange rate and economic. While these countries are experimenting with changes in the exchange rate regimes, a lively debate is continuing on the choice of appropriate exchange rate regimes for developing countries.

Since the Asian crisis, a popular view among academic economists and policymakers is that developing countries with open capital accounts have a bipolar Cited by: CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): After the East Asian Financial crisis, the need for a greater level of economic integration in the area has become evident.

The crisis has also brought to the forefront; the question of an appropriate exchange rate regime in the region and formation of a monetary union can be a viable option. CHOICE OF EXCHANGE RATE REGIMES FOR DEVELOPING COUNTRIES Fahrettin Yagci Lead Economist, AFTM1, The World Bank E-mail: [email protected] April Acknowledgement This paper was prepared for a workshop sponsored by the National Economic Consultative Forum to discuss the exchange rate issues in Zimbabwe to be held in April in Harare.

An exchange rate regime is the way a monetary authority of a country or currency union manages the currency in relation to other currencies and the foreign exchange is closely related to monetary policy and the two are generally dependent on many of the same factors, such as economic scale and openness, inflation rate, elasticity of the labor market, financial market development.

Exchange Rate Real Exchange Rate Exchange Rate Regime Flexible Exchange Rate Asian Economy These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm : Ramkishen S.

Rajan. 21) Under an international regime of fixed exchange rates, countries with a BOP _____ should consider _____ their currency while countries with a BOP _____ should consider _____ their currency.

exchange rate regime (de facto or de jure), the problem of endogeneity of exchange rate regime and more importantly, most studies are based on cross-country cases that may not account for underlying country specific factors.

The problem of endogeneity of the exchange rate regime points to a possibility of two-way causality between inflation and.ships between exchange rates and other important economic variables.

In surveying theoretical models of exchange rate determination, therefore, it is appropriate to examine the empirical regularities that have been characteris- tic of the behavior of exchange rates and other related variables under float- ing exchange rate by:   Currency exchange rates make up a very important part of a nation's economy.

The exchange rate is the value of the currency compared to another one. Author: Kristina Zucchi.