Revisiting the post-crisis relationship between Asia-Pacific currencies: Implications on the common Asian currency and insights on international banking in the Asia-Pacific region

• Main Author: Tolentino, Jeden O.
• Format: text
• Published: Animo Repository 2008
• Subjects: Pacific Area—Economic integration; Asia—Economic integration; Banks and banking, International; Economics; Finance
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/13588
• Institution: De La Salle University

This study is an extension of a previous work by the author that explored the relationship between Asia-Pacific currencies in the decade that followed the Asian financial crisis of 1997. Applying a similar methodology, this time on daily exchange rate data on ten Asia-Pacific currencies against the euro from the end of the Asian financial crisis to the present, the direction and strength of the relationships among the currencies were analyzed and modeled. These results were compared to those of the previous analysis using the U.S. dollar as the focal currency. The implications of the findings on the proposed common Asian currency and the impact of such a currency on international banking in the Asia-Pacific region were discussed.