The study looked at how the RMB exchange rate, exchange rate system, and foreign reserves affect currency mismatch. They used a SSM model with data from 1985 to 2009. The results showed that the RMB exchange rate is the main factor influencing currency mismatch. The exchange rate system and foreign reserves also play a role in causing currency mismatch. However, having a floating exchange rate system can help reduce currency mismatch risk to some extent.