Economics, Econometrics and Finance
4 years ago

Foreign Exchange Reserves Impact RMB Exchange Rate - Unveiling Economic Equilibrium

International Core Journal of Engineering
Analysis of the Impact of Foreign Exchange Reserves and RMB Exchange Rate - Empirical Analysis based on VAR Model
Wenjie Chen, Li Dai, Xiaoyan Qin

Paper Summary

The article analyzes how China's foreign exchange reserves and the RMB exchange rate are connected from 1999 to 2018. They found that changes in foreign exchange reserves can affect the RMB exchange rate in the long term, causing it to go up or down. However, this impact is not significant in the short term. The study suggests recommendations for setting China's foreign exchange scale.

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