Japanese Yen as an alternative vehicle currency in Asian
AbstractMembers of Asian countries have been thinking about using others’ currencies instead of U.S. Dollar for regional trade. Hence, there is a strong case to study the Japanese Yen as an alternative hard currency in this region for trade transaction. This paper investigates the long-run co-integration to determine the possibility and feasibility to use Yen as a future vehicle currency in the Asian region namely Malaysia, Singapore, Thailand, Indonesia, the Philippines, China, Korea and India by examining their daily exchange rate movements denominated in Yen. Empirical evidence shows that four out of eight countries namely Malaysia, the Philippines, Singapore and Korea are the countries that support our hypothesis.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11891.
Date of creation: 2008
Date of revision: 2008
Exchange Rate; Cointegration; Granger-causality; Asian;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-07 (All new papers)
- NEP-CWA-2008-12-07 (Central & Western Asia)
- NEP-IFN-2008-12-07 (International Finance)
- NEP-MON-2008-12-07 (Monetary Economics)
- NEP-SEA-2008-12-07 (South East Asia)
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