As a follow-up to the International Conference on Exchange Rate Stability and Currency Board Economics of 28-29 November 1998, the Department of Economics of the Hong Kong Baptist University will organize an International Workshop on the theme "Currency Boards: Convertibility, Liquidity Management and Exit" on 9 October 1999 in Hong Kong.

On the basis of the 1998 Conference, the International Workshop will provide a forum for more in-depth discussion among experts on the technicalities of improving the robustness and efficiency of a modern currency board system with respect to the following issues:

1. The extent of the convertibility undertaking by the currency board: the cash base, the monetary base in different definitions, and beyond the monetary base (e.g. also covering various components of bank deposits)?
2. The access to the convertibility undertaking: by banks? non-bank financial institutions? depositors? or all cash holders?
3. Ways to manage liquidity in the banking system under a currency board system from the perspective of the monetary authority: variable deposit reserve requirements? discount window? lender of last resort (LOLR) facilities?
4. Ways to manage liquidity by banks under a currency board system: how to prepare for and weather the storm?
5. Exit options: re-pegging, floating, joining a monetary union, and dollarization etc.

The Workshop is supported by the research team of the Focused Research Area "Currency Board Economics and the AEL Model".