APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

December 21, 2018. (Friday) 12:30-14:00

Institute of Developing Economies, Japan External Trade Organization C22 Meeting Room 　

Revisiting the Impacts of Exchange Rate Movement on the Dollarization Process in Cambodia

Cambodia is a highly dollarized economy where foreign currency is widely used as a means of payment, a unit of accounts, and a store of value, even though the foreign currency is not officially adopted. Previous studies on factors affecting the dollarization process in Cambodia indicate that exchange rate movement is one of its important determinants. These studies tend to assume that the effects of this movement are symmetric. However, domestic currency appreciation and depreciation can have asymmetric impacts on people’s behaviors when substituting between domestic currency and foreign currency. Therefore, this study re-examines the impacts of exchange rate movement on the dollarization process in Cambodia by taking into account the possibility of these asymmetric effects. The estimation results indicate that Cambodian Riel depreciation and appreciation do have asymmetric impacts on its dollarization process. These results provide some implications for policy actions addressing the dollarization issue in Cambodia.

Dr. Sovannroeun Samreth（Saitama University, Graduate School of Humanities and Social Sciences）

Kiyoyasu Tanaka

English