Use of Currencies in International Trade: Any Changes in the Picture?

Auboin, Marc

doi:10.2139/ssrn.2077974

Cited by 20 publications

(9 citation statements)

References 15 publications

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“…Does that mean, as some suggest (e.g. Auboin, 2012), that the syste1n today can therefore be described as a duopoly? Even that is doubtful, given the evident disparities between the two currencies.…”

Section: Bipolarity?mentioning

confidence: 99%

What does the international currency system really look like?

Cohen

Benney

2013

Review of International Political Economy

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Section: Bipolarity?mentioning

confidence: 99%

What does the international currency system really look like?

Cohen

Benney

2013

Review of International Political Economy

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“…5 We measure monthly asset returns in US dollars (US$) since our focus is on long term integration and higher frequency data is noisy. We are motivated to use the US$ as the basis for stock market valuation since it is the primary invoicing currency of trade within the Asia-Pacific region and the major currency used for settling cross-border transfers and foreign exchange (Auboin, 2012; Bank for International Settlements (BIS), 2013). While it is customary in most international portfolio studies to take the perspective of the US versus the local investor, doing so also overcomes the effects that domestic exchange rate changes may have on international portfolio diversification where the objective is diversification of systematic risk, not exchange risk.…”

Section: Introductionmentioning

confidence: 99%

Time Varying Asian Stock Market Integration

Batten

Morgan

Szilagyi

2015

Singapore Econ. Rev.

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We employ an asset pricing framework with varying estimation lengths to show that there has been an increasing degree of integration between Asian and international stock markets, but very little with Japan. This finding is consistent with prior studies and highlights the impact of recent regulatory and economic reform undertaken throughout the region. Our results show that instability in the asset variance structure underpins the observed varying degrees of financial market integration. In particular, modeling integration using shorter estimation periods helps explain the time varying nature of financial market integration and the benefits that may accrue to international and domestic investors.

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“…It has a large number of growing domestic financial markets that are linked with one another more closely than before. In 2010, ASEAN+3 accounted for more than 25% of global trade, yet the shares of the two major currencies in the region-the yen and the RMBin total global trade payments were about 2.5% and 0.24%, respectively, whereas their shares in total global trade were 5% and 11.4% (Auboin 2012).…”

Section: Objectivesmentioning

confidence: 99%

Use of National Currencies for Trade Settlement in East Asia: A Proposal

Lee

Park

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, the ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractThis paper develops a multilateral currency system where national currencies are used for trade settlement in East Asia, comprising the Association of Southeast Asian Nations (ASEAN) member countries, the People's Republic of China, Japan, and the Republic of Korea (ASEAN+3). The currency scheme is expected to mitigate the risks associated with independent attempts at internationalization in non-convertible currency countries. It could also reduce dependence on the US dollar, safeguard against financial spillovers from outside, and deepen trade and financial integration in the region. The patterns and structure of trade and financial openness suggest that East Asia has already established an economic base upon which it could launch such a system. The experience with renminbi internationalization will help the Republic of Korea and ASEAN-5 to emulate this strategy.

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Use of Currencies in International Trade: Any Changes in the Picture?

Cited by 20 publications

References 15 publications

What does the international currency system really look like?

What does the international currency system really look like?

Time Varying Asian Stock Market Integration

Use of National Currencies for Trade Settlement in East Asia: A Proposal

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