Question 2 After the Asian Financial Crisis in 1997, there is talk of introducing an ASEAN CommonCurrency to mitigate exchange rate uncertainty and speculative attacks. With the establishmentof the ASEAN Economic Community in 2015, you are asked to advise if it is timely to havean ASEAN Common Currency in this region. Answer the following questions: (a) Explain the meaning of an Optimum Currency Area. Discuss the advantages of ASEANforming an optimal currency area.(10 marks) (b) What are the factors member countries should consider before ASEAN can adopt acommon currency? Explain.(10 marks)
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