Stable Exchange Research Articles

Public Debt and Exchange Rate Stability in Nigeria: An Empirical Analysis

This study examined public debt and its effect on exchange rate stability in Nigeria from 1980 to 2019. The data were subjected to statistical analysis using vector autoregression model. Using data on external and domestic debt servicing ratio to total debt stock, the findings showed no significant relationship between public debt and exchange rate stability in Nigeria within the period, likewise for ratio of external debt servicing to total external debt stock and exchange rate. Finally, domestic debt servicing had no significant relationship with exchange rate. The study concluded that as Nigeria increases external debt servicing, domestic prices increases and this also affects exchange negatively. It is recommended that concerted effort be intensified towards decreasing the level of external debt profile of Nigeria which will invariably decrease external debt servicing. Also, government should intensify revenue drive through exploring other viable sources that do not have repayment plan rather than relying on augmenting yearly budget through public debt accumulation. Keywords: Public Debt, Exchange Rate, Economic Stability, External Debt Servicing Ratio, Nigeria Economy.

TESTING THE POSSIBLE OCCURANCE OF A CURRENCY CRISIS IN THE SECOND DECADE OF THE 21ST CENTURY

Typically, currency crisis is linked with situation as ruined credibility of domestic economic policies.Monetary authorities must be careful in maintaining stable exchange rate regime. This means falls in real incomes, losses in output, decreases in employment, shocks which are reasons for outflow of investment and capital. In order to provide adequate explanations of disorders that occur in a financial system and collapse of the currency regime, the aim of this rеsеаrch is to analyze (theoretical and empirical) the possibility of currency crisis occurrence in Serbia in pre-pandemic period, from 2010 to 2019. Through empirical analyzes are used some indicators which are a sort of toolbox that may contribute for eаrly revelation of а currеncy crisis.

Estimation and Analysis of the Agricultural Investment Model in Iraq (1990-2020) using the Autoregressive Distributed Lag Methodology

In this research, the effects of some financial and economic determinants of agricultural investment in Iraq during the period (1990-2020) were analyzed using the autoregressive distributed lag (ARDL) methodology. In this context, agricultural loans, inflation rate, budget deficit, exchange rate, and financial allocations to support agricultural projects were chosen as determinants of agricultural investment. The problem of the research is that the Iraqi agricultural sector possesses many components and capabilities that encourage investment, but it suffers from low investments directed to it. This is not commensurate with the importance of this sector, which negatively affects the rates of agricultural development and the decline in the agricultural sector’s ability to increase the rates of self-sufficiency in agricultural products. The research aimed to know the economic determinants and the extent of their impact on investment in the Iraqi agricultural sector. An inferential analytical approach was used based on estimating the autoregressive distributed lag model and demonstrating its suitability to the research data by testing statistical hypotheses related to the model. The data were analyzed and econometric models were estimated using econometrics and time series analysis software Eivews-12. The results of estimating the long-run relationship showed that all determinants have significant effects on agricultural investment except the inflation rate, the most influential of these determinants is the exchange rate, which negatively affects agricultural investment as the dollar exchange rate increases by one dinar, this leads to a decline in agricultural investment by (1.444854) million dinars. Then agricultural loans with a positive impact where an increase in the agricultural loans by one million dinars is offset by an increase in agricultural investment by (53,057) dinars. Followed by financial allocations for agricultural projects with a positive impact, where every increase in investment allocations by one million dinars will lead to an increase in agricultural investment by (422) dinars. And finally, the public budget deficit with a negative impact on agricultural investment, where every increase in the budget deficit by one million dinars will be offset by a decline in agricultural investment by (50) dinars. The joint integration test showed a long-run equilibrium relationship between economic and financial determinants and agricultural investment. The research recommends the need for the state to implement a package of policies and procedures to activate the role of variables affecting agricultural investment, which contribute to attracting local and foreign investments, most notably maintaining a stable exchange rate for the local currency and increasing the volume of agricultural loans provided.

Determinant of FDIs In Promoting Prosperity: An Empirical Study on Bangladesh

Foreign Direct Investment (FDI) helps an economy to grow and develop by increasing employment opportunities, developing human resources, developing backward areas, increasing exports, exchange rate stability, and improving capital flows. More than 700 million people around the world are struggling with poverty. When a nation can better feed its people, and give better opportunities to people, the nation will develop itself and help develop other nations too. The research proposes to study the role of Foreign Direct Investment (FDI)s on developing countries in Asia in reducing poverty by promoting global prosperity. For this purpose, the research conducts qualitative analysis using secondary data by creating an empirical model by multiple linear regression analysis and the Ordinary Least Square method. After analyzing the foreign Direct investments made by Bangladesh over the period 2003 to 2019 and determining the relation between Foreign Direct Investment (FDI) and GDP, inflation, Real Interest Rate, and Labor Cost it is found that only GDP has an impact on FDI Thus, the research analyses the determinants of Foreign Direct Investment (FDI) over GDP in poverty alleviation and prospering the developing countries.

Temperature Stable Ion Exchange Resins as Catalysts for the Manufacturing of Vitamin Precursors by Aldol Reaction.

This study explores the potential of robust, strongly basic type I ion exchange resins-specifically, Amberlyst® A26 OH and Lewatit® K 6465-as catalysts for the aldol condensation of citral and acetone, yielding pseudoionone. Emphasis is placed on their long-term stability and commendable performance in continuous operational settings. The aldol reaction, which traditionally is carried out using aqueous sodium hydroxide as the catalyst, holds the potential for enhanced sustainability and reduced waste production through the use of basic ion exchange resins in heterogeneous catalysis. Density Functional Theory (DFT) calculations are employed to investigate catalyst deactivation mechanisms. The result of these calculations indicates that the active sites of Amberlyst® A26 OH are cleaved more easily than the active sites of Lewatit® K 6465. However, the experimental data show a gradual decline in catalytic activity for both resins. Batch experiments reveal Amberlyst® A26 OH's active sites diminishing, while Lewatit® K 6465 maintains relative consistency. This points to distinct deactivation processes for each catalyst. The constant count of basic sites in Lewatit® K 6465 during the reaction suggests additional factors due to its unique polymer structure. This intriguing observation also highlights an exceptional temperature stability for Lewatit® K 6465 compared to Amberlyst® A26 OH, effectively surmounting one of the prominent challenges associated with the utilization of ion exchange resins in catalytic applications.

Monetary Policy, Macroeconomic and Anomalies Interactions Post COVID in Developed and Eastern European Stock Markets

The purpose of this study is to examine the crucial factors amongst monetary policy and macroeconomic variables that spike the anomalies momentum on stock markets post-COVID-19 pandemic in selected Developed and Eastern European countries. This study uses panel data to measure the cross interactions of five stock exchanges based on unprecedented recovery in the European stock markets that yield astonishingly higher returns post-COVID-19, believed to be due to a perfect adoption of monetary policies (Exchange and Inflation Rates) and macroeconomic factor (Economic Growth) from January 2017 to December 2022. Findings suggest that the Exchange Rate and Economic Growth of the country are positively significant in influencing the Stock Market Performance in European stock markets. Additionally, the Inflation Rate surprisingly is negatively related to Stock Market Performance. Furthermore, local and foreign investors prefer to invest in a country that has a great adoption of monetary policies (stable Exchange Rate and lower Inflation Rates) as well as macroeconomic variables (resilient Economic Growth) for post COVID-19 economic landscape. For practical implications, the study suggests that the stock market performance, exchange rate, inflation rate, and economic growth of the country should be maintained and improved to attract fund inflows from local and foreign investments. To the best of the authors’ knowledge, this study is the first that examines the anomalous market momentum effect post-COVID-19 pandemic focusing on aspects, monetary policy, and macroeconomic variables. The momentum effect investing strategies that provide abnormal returns in different stock markets truly existed.

Macroeconomic Stability and Optimal Policy Mix

Public welfare and macroeconomic stability should be the main objectives of fiscal and monetary policy cooperation. Monetary and fiscal policy should be coordinated better to maintain sustainable economic development. To implement fiscal measures and monetary controls, a balanced budget is necessary. This study uses data from 1976 to 2022. A macroeconomic stability check uses real GDP, current account balance, exports, real effective exchange rate, broad money (M2), foreign exchange reserves, consumer price index (CPI), nominal exchange rate, government expenditures, and government tax revenue. The VAR models we use are Impulse Response Functions (IRFs) and Variance Decompositions (VDs). CMR feels a negative impact, TRY, whereas M2G, GY, and others feel a positive impact. Achieving output and price stability requires higher call money rates, more tax revenues, and reduced government spending. Output gaps should be negative.M2G and CABY are negatively correlated, whereas CABY and CMR are positively correlated. If there is a negative output gap, monetary aggregates and taxes conflict with price and production stability; however, policy should aim to increase the current account balance. We recommend strict fiscal and monetary policy measures to stabilize output and limit inflation whenever there is a positive output gap. In addition to strengthening trade and foreign exchange reserves, reduced government spending will stabilize exchange rates; however, increasing tax revenue will counteract these benefits by strengthening the current account.

Nexus between Monetary Freedom, Political Stability and Exchange Rate with Sustainable Stock Market Development in Pakistan: A Comparative Analysis by ARDL and NARDL

This study scrutinizes both symmetric and asymmetric impact of monetary freedom (MF) on the sustainable stock market development (SMD) in Pakistan, in the presence of political stability and foreign exchange rate. The study uses the time series data for the period of 1992 to 2022, the study applies Non-linear Auto-regressive Distributed Lag (NARDL) and ARDL Bounds Testing for comparative analysis. Monetary freedom with sound political stability and stable foreign exchange rate do Granger Cause and significant correlation with the SMD of Pakistan. The results from ARDL Bound Testing show that MF and exchange rate has highly significant long-run impact on the SMD with coefficient values of 4.64 and 3.32. The Positive asymmetric cumulative dynamic multipliers (ACDMs) of MF have highly significant impact on SMD. Political stability has been a Positive Function of its ACDMs, while exchange rate has been a Negative Function of its respective ACDMs. The impact of exchange rate is highly significant with its Negative ACDMs coefficients of 17.42 and 16.76, denoting a long-lasting impact on the sustainable economic growth of Pakistan by strengthening the pace of stock market development. This comparative study will add revised practical credence to the existing literature on autoregressive models and will facilitate modified and improved policy-making at operational and strategic level to achieve decent economic growth under sustainable development goals (SDG).

Tailoring highly stable anion exchange membranes with graft molecular structure ordering using reversible addition-fragmentation chain transfer polymerization for alkaline fuel cells

The radiation-induced grafting is used to prepare a variety of anion-exchange membranes (AEM) based on poly(ethylene-co-tetrafluoroethylene) (ETFE) utilizing a reversible addition-fragmentation chain transfer (RAFT) agent. The copolymerization process is controlled by the RAFT agent, resulting in AEMs with a restricted molecular weight dispersion. As a result, RAFT-AEMs exhibit decreased water uptake and reduced swelling. A significant improvement in thermal and mechanical characteristics is evidenced, while the conductivity remains practically unaltered. Anion-exchange membrane fuel cell (AEMFC) tests revealed that conventional RIG-AEMs and RAFT-AEMs with low RAFT content (5 wt%) have comparable beginning-of-life performances (∼0.95 W cm−2). However, for higher RAFT contents, the performance trends to decrease indicating an imbalance in water management. Furthermore, short-term stability tests suggest that RAFT-AEMs are able to operate highly stable, with a conductivity rate loss of 0.05% h−1, which represents an improvement of 160% in comparison to conventional RIG-AEM. AFM analysis demonstrated that structural ordering molecular and morphology tailor the fundamental properties of ETFE-based AEMs, combining enhanced performance and stability for alkaline fuel cell applications.

Macroeconomic Variables and Stock Market Development in Africa: Evidence from Nigeria

This study examines the macroeconomic determinants of stock market development in the Nigerian economy. This was aimed at ascertaining how INF representing real interest rate, GDP representing gross domestic product per capita, and BMS representing broad money supply has stimulate the stock market development in Nigeria. Historical data was collated and estimated employing the ARDL form of Ordinary Least Squares (OLS) technique. The empirical results indicate that only inflation had a negative and significant impacts on stock market development while real output and money supply exerted positive but insignificant impacts. On the basis of the findings of this study, the following recommendations are made: The monetary authorities have to regularly review their monetary policy direction to bring inflation lower than it is; Regulatory authorities and policy makers should ensure that there is general stability in money supply and exchange rates, while trying to put the inflationary trends under control and at the same time maintain a stable interest rate regime in the economy in order to achieve improvements in stock market performance to bring about desired economic growth and national development.

Some Recent Trends and Implications of Foreign Direct Investment in Bangladesh

ABSTRACT: This study was carried out to evaluate the recent trends and implications of foreign direct investment (FDI) in Bangladesh. Due to its cost-effective workforce, potential market, rapidly growing economy, advantageous geographical location, and other pertinent factors Bangladesh has become one of the most enticing developing countries for foreign direct investment (FDI). Both quantitative and qualitative analyses were used. The trends and implication of FDI was assessed through different variables such as Net FDI inflow in Bangladesh, FDI inflows as percentage of GDP of Bangladesh, sectoral FDI inflow in Bangladesh, net FDI inflows from top 10 countries and by sectors, net FDI flow by EPZ and non-EPZ areas, no. of employment by FDI, FDI inflow by components, GDP, export, import, balance of payment, foreign exchange rate, inflation and corporate tax rate, which were then analyzed using different statistical measures, such as growth percentage, trend equations, the square of the correlation coefficient and correlation matrix. Thirteen trend equations and R-squared were tested for different relevant variables of FDI. To estimate the implication of FDI in Bangladesh, seven hypotheses has also been tested. Among them, the trend values were positive for eleven variables. The square of correlation coefficient (R-squared) of most of the equations is more than 0.7, indicating well fitted trend equations. According to the results of this analysis, FDI has positive correlation between GDP growth, exports, imports, employment in EPZs, and exchange rates. However, there is a significant negative correlation between corporate tax rate and inflation rate. By introducing beneficial FDI policies, providing substantial investment incentives, streamlining pertinent regulations, minimizing bureaucratic procedures, and through better infrastructure Bangladesh must act swiftly to entice more foreign investors. Despite adopting lenient FDI regulations, the government musthave to ensure facilities like more export processing zones, easy access to IT facilities, maintaining stable foreign exchange rates, encourage FDI from leading nations, an attracting new foreign investment source. By implementing these policies into practice, Bangladesh can boost up economic growth and may attract more FDI. This study proves that there is room for FDI to increase in the future and supporting economic growth of Bangladesh.

Application of Asymmetric-GARCH Type Models to The Kenyan Exchange Rates

Modelling and forecasting the volatility of a financial time series has become essential in many economic and financial applications like portfolio optimization and risk management. The symmetric-GARCH type models can capture volatility and leptokurtosis. However, the models fail to capture leverage effects, volatility clustering, and the thick tail property of high-frequency financial time series. The main objective of this study was to apply the asymmetric-GARCH type models to Kenyan exchange to overcome the shortcomings of symmetric-GARCH type models. The study compared the asymmetric Conditional Heteroskedasticity class of models: EGARCH, TGARCH, APARCH, GJR-GARCH, and IGARCH. Secondary data on the exchange rate from January 1993 to June 2021 were obtained from the Central Bank of Kenya website. The best fit model is determined based on parsimony of the Akaike Information Criterion (AIC), Bayesian Information Criterion (BIC), Log-Likelihood criterion, and minimisation of prediction production errors (Mean error [ME] and Root Mean Absolute error [RMAE]). The optimal variance equation for the exchange rates data was APARCH (1,1) - ARMA (3,0) model with a skewed normal distribution (AIC = -4.6871, BIC = -4.5860). Volatility clustering was present in exchange rate data with evidence of the leverage effect. Estimated Kenya’s exchange rate volatility narrows over time, indicating sustained exchange rate stability.

Macroeconomic Factors and Foreign Direct Investment: A Comparative Study of Nigeria and South Africa

This study examined macroeconomic factors that determine foreign direct investment into Nigeria and South Africa. The effect Time series data was sourced from Central Bank of Nigeria Statistical Bulletin and World bank data base from 1987-2017. Net foreign direct investment to gross domestic product was modeled as the function of exchange rate, real interest rate, real gross domestic product, inflation rate and money supply. The null Hypotheses (H0) were tested at 0.05 level of significance, Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The adjusted R2 shows that the independent variables can explain 45.2 percent in foreign direct investment while the variables explained 53.4 percent of foreign direct investment to South Africa. the study found that money supply, inflation rate, gross domestic products and real interest rate have positive relationship with foreign direct investment inflow into Nigeria economy while exchange rate have negative effect on foreign direct investment inflow to Nigeria economy. The positive effect of the variables confirms the a-priori expectation of the study. The study found that money supply, real interest rate and inflation rate have negative effect on foreign direct investment to South Africa while gross domestic product and exchange rate have positive effect on foreign direct investment to South Africa. The study recommends that Policies of the government to ensure price stability and macroeconomic stability are required to attract foreign direct investment into the country. Government should formulate sound foreign exchange rate policy that will attract foreign direct investment through exchange rate stability.

(Invited) New Membranes for Preventing Crossover in Non-Aqueous Redox Flow Batteries

Non-aqueous redox flow batteries have been considered as an alternative battery technology for grid storage due to the ability to operate at higher potentials with organic solvents. However, there are no commercial ion exchange membranes capable to handling these non-aqueous redox flow batteries, because they swell or degrade over time. This paper will discuss strategies for synthesizing stable anion exchange membrane separators for non-aqueous redox flow batteries to prevent crossover and improve long term stability.

Stock Returns and State-Dependent Effects of Changes in Exchange Rate and Money Supply from Central Banks

This study investigates the state-dependent effects of exchange rate movements and money supply shocks on stock market returns using daily stock returns, exchange rate, and variations in money supply data obtained from the databank.worldbank.org website from 1990 to 2022. The stock markets of ten emerging and developed countries were used in the study. The Markov-Switching regression methodology was utilized for this study. The results suggest that for the developed stock markets, in Regime 1, a positive shock to the money supply stimulated a significant rise in the stock returns while in Regime 2, a positive shock to the money supply induced a drop in returns. This suggests that for the developed stock markets, the effect of money supply shock on returns is state-dependent. In the developing stock markets, the coefficient for exchange rate was negative and significant in Regime 1, while it was insignificant in Regime 2. Therefore, the effect of exchange rate on returns is state-dependent in developing countries. Also, the coefficient for volatility in the exchange rate was negative and sizable in both regimes, indicating that the returns effect of volatility is not state-dependent. Basically, each day the exchange rate appreciates, stock returns rises in the developed stock markets while a devaluation policy executed in developing countries stimulated some decline in returns of emerging markets. In both regimes, a rise in money supply shock had positive and significant returns. The effect of money supply on stock returns is not state-dependent. Consequently, developing countries need flexible approaches to managing the variations in the exchange rates and money in circulation. While policymakers in developed markets may need to focus more on reducing volatility rather than adjusting exchange rates to influence stockpiling, those of emerging countries could benefit more from policies that stabilize exchange rates.

Effect of Global Oil Price Volatility and Exchange Rate Policy on Foreign Exchange Reserves in Iraq

Purpose: This paper offers simulations and forecasts of the ideal currency reserve measure in light of future shocks to the Iraqi economy due to the downturn in the international price of oil and the global economic shutdown triggered by the Corona pandemic.
 
 Theoretical framework: The Iraqi foreign exchange reserves have entered a cycle of sustained and accelerated degradation in recent years and hit alarming amounts in 2020, affecting Iraq's financial stability compared to other foreign currency reserves. According to figures from the Iraqi Parliament's Financial Commission, the Iraqi fund in the Central Bank of Iraq decreased, following removing the government's second loan by the end of 2020, to $35 billion. The Fitch Ratings Agency, on the other hand, has found that Iraq's plan to slash public sector wages and pension costs will delay the reduction of currency reserves as part of the attempt to lower financial imbalances and relieve financial pressures. However, it will be difficult to enforce and risk exacerbating social disorders. According to Fitch, by the end of August (15% of projected GDP for 2020), cash funding from the Central Bank of Iraq grew to 28.5 billion Iraqi dinars from 14.1 billion Iraqi dinars at the end of May.
 
 Design/methodology/approach: The study uses an analytical approach to show the fluctuations in oil prices and their impact on the fluctuation of oil revenues and the currency-selling window that the Central Bank of Iraq applies to its foreign reserves.
 
 Findings: The systemic problem of worldwide petroleum price drops that provide longer-term estimates to estimate the decrease in petroleum prices on global oil markets explains the quick fall in Iraqi exchange reserve magnitude. Iraq's foreign reserves, mostly from oil exports, fulfill international standards. Iraq's exchange rate policy depends on the Central Bank's direct foreign currency sales. This approach reduces foreign money diversion from Iraq, preventing the central bank from maintaining exchange rate stability.
 
 Research, Practical & Social implications: The impact of foreign reserves on national financial stability is becoming more obvious as their function evolves from supplying fundamental transaction needs to fulfilling financial security criteria.
 
 Originality/value: The Iraqi dinar's value must be protected at all costs, hence the Central Bank of Iraq's foreign reserves are crucial. These reserves are affected by oil revenues, the main financier for it, and the window for selling the currency, which is the outlet for leakage from it.

Drivers of Stock Market Development in Nigeria: Does Openness Matter?

The stock market represents a major source of long-term funds. However, the Nigerian stock market lacks depth due to the weak regulatory system and legal framework. Extant studies have shown that both institutional quality and openness are enablers of the stock market. An analysis of the effects of institutional quality and openness on the development of the Nigerian stock market from 1996 to 2021 is therefore crucial. The Auto Regressive Distributive Lag (ARDL) method is used to analyze data from World Bank databases and the Lane-Milesi Ferreti index, with results showing that institutional quality has a positive and significant impact on stock market development in Nigeria. Meanwhile, development of the stock market, institutional quality, and openness are related over the long term based on the ARDL bounds test. A further finding revealed that the development of Nigeria’s banking sector and the exchange rate had positive (negative) effects on the development of the stock market, respectively. Additionally, stock market liquidity contributed to development of the market. This study came to the conclusion that an enabling stock market in Nigeria could be strengthened by the interaction of institutional quality and openness. The study concludes that strengthening Nigeria’s governance institutions through the creation of an appropriate legal framework is necessary to ensure political stability and the absence of violence in the country’s political system. Besides, the government really needs to grant autonomy to agencies in charge of tackling corruption to enable them to enjoy simultaneous openness. Monetary authorities should also ensure exchange rate stability and improved credit for domestic investment activities.

Development and study of adsorption properties of a new sulfur polyvinyl chloride cation exchanger for water treatment

The article analyses the sorption properties of thermally and chemically stable sulfonic cation exchange resin based on PVC. The article presents the temperature dependence of the analysis results of the sorption properties of Ca2+ and Mg2+ ions of sulfonated PVC. The results of the obtained sorption analysis are scientifically confirmed in the article. In addition, spatial Bode angle diagrams are presented, which provide very important scientific evidence of single maxima at intermediate frequencies. Purification of industrial waste water of enterprises was carried out with the help of the obtained sulfonic cation exchanger.

The Effect of Farmers' Exchange Rates on Rice Prices in 2017-2019

This research aims to predict the price of rice in the mill according to quality (Rupiah/Kg) at a premium, medium and low levels in Indonesia. Then also to find out whether there is an effect of farmer exchange rates on the price of rice in mills at a premium level. The study used purposive sampling, namely samples in Indonesia. Data analysis using simple linear regression. The results showed that there was an effect of the farmer's exchange rate on the price of rice in the mill at the premium level of 69.16%, the farmer's exchange rate affected the price of the rice in the mill according to the quality (Rupiah/Kg) at the premium level. The recommendation that can be given is that the government can take steps to maintain the stability of farmers' currency exchange rates, especially in the face of global economic fluctuations. Appropriate fiscal and monetary policies can help reduce the risk of exchange rate volatility and have an impact on rice price stability at the mill. A robust monitoring system is needed to monitor exchange rate fluctuations and rice prices on a regular basis.

The Impact of Trade Openness on Economic Stability in Asian Countries

The purpose of this study was to investigate the nexus between trade openness and three aspects of macroeconomic stability, including growth stability, inflation stability, and exchange rate stability, in 20 Asian countries from 2011 to 2019. The empirical analysis was carried out with the help of the autoregressive distributed lag (ADRL) model to examine the impact of trade openness on economic stability. Our results revealed that trade openness was negatively associated with the growth stability of the countries located in the Asian region, while the opposite was true for exchange rate stability in the short run. There was, however, no relation between trade openness and inflation stability, which requires further investigation. In addition to contributing new empirical evidence to academic literature, our study expects to have important implications for policymakers. In particular, Asian countries are recommended to speed up the process of trade liberalisation to accelerate long-run economic growth and exchange rate stability.