Forward currency markets in Asia: lessons from the Australian experience

BIS Quarterly Review  |  September 2006  | 
11 September 2006
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 |  12 pages

Capital controls have resulted in the creation of numerous offshore non-deliverable forward (NDF) markets for Asian currencies. The Australian experience in the 1970s and early 1980s indicates that an NDF market may facilitate a smooth transition to a fully convertible currency.

JEL classification: F310, G150, G180, N250.