Estimation of Asian effective exchange rates
Subtitle: a technical note
By: by San Sau Fung ... [et al.].
Contributors: Bank for International Settlements. Monetary and Economic Department
Series: BIS working papers -- no. 217
Publisher: Bank for International Settlements
Published: 2006
Place of publication: Basel, Switzerland
Language: eng
Format: [electronic resource] :
Description: Discussion of exchange rate policy in Asia would benefit from appropriate measures of exchange rates on a multilateral basis. The purpose of this paper is to refine the construction of the effective exchange rates (EERs) for Asian economies, to make allowances for the role of Hong Kong SAR as an entrepôt and to reflect the fast-growing intra-regional trade. For the scenarios under consideration, it turns out that adjusting for re-export trade through Hong Kong SAR is generally more important in the determination of trade weights than updating the base year. The proposed refinements have important policy implications, particularly in estimating the relative sizes of currency blocs, should the region's exchange rate policies become more oriented to trade baskets than to bilateral dollar rates.
Notes: Title from PDF file (viewed on Jan. 4, 2007).

"Monetary and Economic Department."

"October 2006."

Includes bibliographical references.

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