Prospects and possibilities of introducing a common currency in SAARC countries

The growth of regional economic cooperation arrangement is one of the major developments in the post World War II period. The formation of regional integration has been greatly successful in bringing historically hostile countries together. The classic example is the state in the European Union and...

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Главные авторы:	Chowdhury, Anup, Chowdhury, Saman Paul, Haque, Shamim Ehsanul
Формат:	Статья
Язык:	English
Опубликовано:	BRAC University 2010
Предметы:	Exchange rate Gross domestic products Transaction cost Economic integration
Online-ссылка:	http://hdl.handle.net/10361/434

id	10361-434
record_format	dspace
spelling	10361-4342019-09-29T05:47:23Z Prospects and possibilities of introducing a common currency in SAARC countries Chowdhury, Anup Chowdhury, Saman Paul Haque, Shamim Ehsanul Exchange rate Gross domestic products Transaction cost Economic integration The growth of regional economic cooperation arrangement is one of the major developments in the post World War II period. The formation of regional integration has been greatly successful in bringing historically hostile countries together. The classic example is the state in the European Union and the South East Asia where economic dimensions have brought long time foes in the same dais. The basic premise on which SAARC was founded was that by activating cooperative cultural identities and economic interests, political conflicts and tensions in South Asia could be moderated, if not completely eliminated. It looks advantageous if SAARC countries could adopt a single currency-substantially enhancing their bargaining power together in the world market. In this paper drive has been made to analyze the possibilities and benefits of a single currency in SAARC countries. A common currency’s attraction is that it doesn’t represent the currency of any single country. It’s advantageous to deal with a lesser number of currencies since each time one converts a currency there is a huge loss. The common currency regime, when achieved, can present substantial benefits to the region. With uncertainty about exchange rates removed, and transaction costs reduce trade and investment in the region can get a big boost. Also with money creation under regional guidelines, there would be better prospects of synchronization of inflation, interest rate and GDP growth, all of which can contribute to accelerated growth and poverty reduction. 2010-10-10T10:13:23Z 2010-10-10T10:13:23Z 2008 Article http://hdl.handle.net/10361/434 en BRAC University Journal, BRAC University;Vol.5, No.2,pp. 67-79 application/pdf BRAC University
institution	Brac University
collection	Institutional Repository
language	English
topic	Exchange rate Gross domestic products Transaction cost Economic integration
spellingShingle	Exchange rate Gross domestic products Transaction cost Economic integration Chowdhury, Anup Chowdhury, Saman Paul Haque, Shamim Ehsanul Prospects and possibilities of introducing a common currency in SAARC countries
description	The growth of regional economic cooperation arrangement is one of the major developments in the post World War II period. The formation of regional integration has been greatly successful in bringing historically hostile countries together. The classic example is the state in the European Union and the South East Asia where economic dimensions have brought long time foes in the same dais. The basic premise on which SAARC was founded was that by activating cooperative cultural identities and economic interests, political conflicts and tensions in South Asia could be moderated, if not completely eliminated. It looks advantageous if SAARC countries could adopt a single currency-substantially enhancing their bargaining power together in the world market. In this paper drive has been made to analyze the possibilities and benefits of a single currency in SAARC countries. A common currency’s attraction is that it doesn’t represent the currency of any single country. It’s advantageous to deal with a lesser number of currencies since each time one converts a currency there is a huge loss. The common currency regime, when achieved, can present substantial benefits to the region. With uncertainty about exchange rates removed, and transaction costs reduce trade and investment in the region can get a big boost. Also with money creation under regional guidelines, there would be better prospects of synchronization of inflation, interest rate and GDP growth, all of which can contribute to accelerated growth and poverty reduction.
format	Article
author	Chowdhury, Anup Chowdhury, Saman Paul Haque, Shamim Ehsanul
author_facet	Chowdhury, Anup Chowdhury, Saman Paul Haque, Shamim Ehsanul
author_sort	Chowdhury, Anup
title	Prospects and possibilities of introducing a common currency in SAARC countries
title_short	Prospects and possibilities of introducing a common currency in SAARC countries
title_full	Prospects and possibilities of introducing a common currency in SAARC countries
title_fullStr	Prospects and possibilities of introducing a common currency in SAARC countries
title_full_unstemmed	Prospects and possibilities of introducing a common currency in SAARC countries
title_sort	prospects and possibilities of introducing a common currency in saarc countries
publisher	BRAC University
publishDate	2010
url	http://hdl.handle.net/10361/434
work_keys_str_mv	AT chowdhuryanup prospectsandpossibilitiesofintroducingacommoncurrencyinsaarccountries AT chowdhurysamanpaul prospectsandpossibilitiesofintroducingacommoncurrencyinsaarccountries AT haqueshamimehsanul prospectsandpossibilitiesofintroducingacommoncurrencyinsaarccountries
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Prospects and possibilities of introducing a common currency in SAARC countries

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