IMF Working Papers

The Suitability of ASEAN for a Regional Currency Arrangement

By Paolo Mauro, Tamim Bayoumi

December 1, 1999

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Paolo Mauro, and Tamim Bayoumi. The Suitability of ASEAN for a Regional Currency Arrangement, (USA: International Monetary Fund, 1999) accessed November 24, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the costs, benefits, preconditions, and implications of an Association of Southeast Asian Nations (ASEAN) regional currency arrangement that is assumed to culminate in a regional currency. On economic criteria, ASEAN appears less suited for a regional currency arrangement than Europe before the Maastricht Treaty, although the difference is not large. The transition to European Monetary Union (EMU) indicates that the path toward a common currency is fraught with difficulty. A firm political commitment would seem to be vital to ensuring that an attempt to form a regional currency arrangement is not viewed as simply another fixed exchange rate regime, open to speculative crises.

Subject: Currencies, Economic integration, Exchange rates, Foreign exchange, Monetary unions, Money, Real exchange rates

Keywords: ASEAN, ASEAN context, ASEAN countries' exposure, ASEAN country, ASEAN member, ASEAN process, ASEAN's trade, Asia and Pacific, Common currency, Country, Currencies, Currency, Currency arrangement, Currency union, East Asia, Eastern Europe, EMU, EMU country, EMU process, EU institution, Europe, Exchange rate, Exchange rates, Exposure to fluctuation, Monetary unions, Real exchange rates, Single currency, Western Europe, WP

Publication Details

  • Pages:

    24

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1999/162

  • Stock No:

    WPIEA1621999

  • ISBN:

    9781451857856

  • ISSN:

    1018-5941

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