The impact of offshore exchange rate expectations on onshore exchange rates: The case of Chinese RMB

Autor:	Xiangyun Xu, Junfan Ren, Fei Jia, Yao Shen
Rok vydání:	2021
Předmět:	Economics and Econometrics 050208 finance 05 social sciences Monetary economics Exchange-rate regime Exchange rate Threshold effect 0502 economics and business Renminbi Economics Submarine pipeline Market expectations 050207 economics Marketization Finance
Zdroj:	The North American Journal of Economics and Finance. 56:101349
ISSN:	1062-9408
DOI:	10.1016/j.najef.2020.101349
Popis:	This paper examines the impact of offshore RMB exchange rate expectations on onshore RMB (CNY) exchange rates. Employing data for the period of 2005–2018, we show that overall offshore market expectations influence onshore RMB rates, but this effect is significant only for the period after the “Second exchange rate regime reform” in 2010. The non-uniform nature of this impact is also confirmed by the existence of a threshold effect of the expectations in the same period. The study improves our understanding of how the offshore RMB market influences onshore RMB spot rates as a result of the marketization reform of the RMB exchange rate regime.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::994ba4623cac04d797f725148f514cb0 https://doi.org/10.1016/j.najef.2020.101349 Zobrazit plný text záznamu Full Text from ScienceDirect