Degree of financial opening in the ASEAN countries : a comparison

Abstract

During the last decade, economic growth of the ASEAN countries was aided by the financial reforms undertaken. Specifically, interest rate liberalization has enabled the narrowing of interest rate differentials between domestic and world markets. In addition, the transformation from a fixed to floating exchange rate regime has allowed market forces of supply and demand to determine the exchange rate. These, together with the relaxation of capital controls will promote a two-way flow of funds with the rest of the world.