Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101134
Authors: 
Lee, ll Houng
Park, Yung Chul
Year of Publication: 
2014
Series/Report no.: 
ADBI Working Paper Series 474
Abstract: 
This 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.
Subjects: 
currency internationalization
RMB internationalization
trade invoicing and settlement
JEL: 
F15
F36
F42
Document Type: 
Working Paper

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