Internationalising a currency: the case of the Australian dollar

BIS Quarterly Review  |  December 2006  | 
11 December 2006
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 |  14 pages

Asian policymakers are giving consideration to allowing their currencies to be used by non-residents. If policy allows this and a robust fixed income market provides support, the Australian experience indicates that a currency can internationalise fairly quickly, particularly if it offers a yield pickup.

JEL classification: F3, G1.