Assessing Asian Exchange Rates Coordination under Regional Currency Basket System
Benjamin Keddad ()
Working Papers from HAL
Abstract:
In this paper, I examine the extent to which the Asian exchange rates are coordinated around a synthetic Asian Currency Unit (ACU) defined as a basket of the Asian currencies. Using a VAR model, the results provide some evidence of stabilization among the Asian exchange rates around the ACU. Although the US dollar remains the dominant anchor within the region, these countries have allowed for more exchange rate flexibility against the US dollar since 2006, with the aim to adopt a basket peg where the Asian currencies have gained an increasing role. The empirical results also suggest that the official adoption of an undisclosed currency basket by Chinese authorities in July 2005 has been an important factor in the decision of Asian countries to shift toward a de facto currency basket system.
Keywords: Asian Currency Unit; monetary integration; currency basket peg; nominal exchange rate coordination (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-cba, nep-lam, nep-ltv, nep-mon, nep-neu, nep-opm and nep-sea
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Working Paper: Assessing Asian Exchange Rates Coordination under Regional Currency Basket System (2013) 
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