Eric Girardin: Dealing with dollarization in ASEAN: Issues and challenges

tiistaina
26.2.2013
klo 10:30

Eric Girardin (Aix Marseille School of Economics): Dealing with dollarization in ASEAN: Issues and challenges

Abstract
Dollarization affects ASEAN countries, such as Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV countries). The general phenomenon observed is one of transitional economies (CLMV) dealing with multiple currencies, not only the US dollar, but also the Thai baht and increasingly the Chinese yuan. The paper offers a comprehensive measurement of its magnitude, particularly with respect to cash dollarization, and impact on the CLMV countries, thus assessing the feasibility of dedollarization. An assessment of the desirability of such dedollarization is based on a discussion of costs and benefits of dollarization for these economies. A novel measure of their de facto exchange rate regime and basket peg serves as the basis to offer different scenarios and policy options moving towards 2030.
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