An exchange rate arrangement for East Asia: Anchor or basket?

Ahmed Khalid, Gulasekaran Rajaguru

Research output: Contribution to conferencePaperResearchpeer-review


Given the nature of East Asia’s economic structure, interregional exchange rate stability is an essential requirement for
regional economic integration. Chiang Mei Initiative has further emphasized the need for East Asia to have more exchange rate coordination in the region. As the possibility of a single currency for East Asia is perhaps not feasible due to lack of
academic support for the region to quality as an Optimum Currency Area (OCA), the other two options are (a) an anchor
currency or (b) a currency basket. The emergence of China as a major player in the region requires this issue to be
revisited. This paper investigates which option is more suitable (or preferable) for emerging East Asian countries.
Original languageEnglish
Number of pages1
Publication statusPublished - 2012
Event73rd International Atlantic Economic Conference - Isanbul, Turkey
Duration: 23 Mar 201231 Mar 2012
Conference number: 73


Conference73rd International Atlantic Economic Conference


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