Comments on Promoting Local Currency Usage in the Region

Fukunari Kimura, Keio University and Economic Research Institute for ASEAN and East Asia: The author recalls a long-term dream of finance ministers and central bank governors in East Asia and tries to show the way to get out from under the dominance of U.S. dollar usage in trade and investment. As b...

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Bibliographic Details
Published in:Asian economic papers 2020-06, Vol.19 (2), p.17-18
Format: Article
Language:English
Subjects:
Currency
Investment
Online Access:Get full text
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Summary:Fukunari Kimura, Keio University and Economic Research Institute for ASEAN and East Asia: The author recalls a long-term dream of finance ministers and central bank governors in East Asia and tries to show the way to get out from under the dominance of U.S. dollar usage in trade and investment. As background, there exists deep mistrust on the U.S. economy as a unique and absolute anchor of currencies for international transactions. The paper specifically highlights the enhancing usage of local currencies. Indeed, the usage of the Thai baht has recently increased, though the proportion is still low. The paper claims that some policy incentives must be provided, rather than just letting the market go, to enhance the local currency usage.
ISSN:1535-3516
1536-0083
DOI:10.1162/asep_a_00769