So an Asian dollar
may cost more than 100 US cents after it's exchanged.
"The East Asian Dollar Standard, Life after Death?".
Exchange rates under the East Asian dollar standard.
bond sales total US$15.1 billion so far this year, compared with US$10 billion in the same period last year, making it the busiest start to a year on record according to data going back to 1999.
In that way they can work on a regional currency - the Asian dollar
- for the future."
A financial official, though, admitted it will be a long road for the birth of Asian dollar
, due to the Asian's political and economic situation which is quite different from that of Europe.
As for the other ASEAN countries and Korea, most of them described themselves officially as having flexible exchange rates, though numerous studies have shown that most of them pegged their currencies more or less firmly to the US dollar, partaking in what Ronald McKinnon described as the Asian dollar standard.
Mckinnon, "After the Crisis, the East Asian Dollar Standard Resurrected: An Interpretation of High-Frequency Exchange-Rate Pegging" (Stanford: Stanford University Press 2000) and "After the Crisis, the East Asian Dollar Standard 15 Resurrected", in Monetary and Financial Management in the 21th Century, ed.
Contributors go far deeper than the policy level with case studies and surveys, covering currency misalignments and trade issues amongst major economic areas, the impact of free trade and poverty, the impact of the East Asian dollar
standard and the integration and convergence of financial markets in the European Union on exchange rates and financial markets, asymmetries in such banking sectors as Black-owned banks and the expectations of the system in Mexico, issues in transatlantic monetary policies and monetary stabilization in the presence of an asset bubble, and accession countries and their relations with the internationalization of the Euro and linkages in term structures.
More importantly, they assert that this Asian dollar
block has gained sufficient weight globally such that its development is driving the dynamics of the international monetary system, reserve accumulation, net capital flows and exchange rate movements.
What is true respecting the United States' global capital flows and trade deficit position is even more true for its position vis-a-vis the Asian members of the de facto dollar zone: In 2004 so far, net capital inflows from these Asian dollar
zone countries to the United States are $232 billion, but the trade deficit is only $150 billion.
With real estate prices starting to bounce off the bottom, American owners and deal-makers are finding Asian dollars
available for prime investments.