Abstract
In this paper, according to the PBoC’s official statement, based on the data from 2005 to 2010, a basket of currencies is constructed with the goal of stabilizing the trade volume. The time series of this basket of currencies is compared with the ones of RMB by means of Eview 6.0. As a result, it is concluded that the trend of RMB exchange rate is propelled by supply and demand in the market under the current managing float regime, which is an inevitable outcome of the “the dilemma of PBoC” and surely, not manipulated by the Chinese government.
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Notes
- 1.
Since the exchange rate of VND (Viet-Namese Dong) and the SAR (South African Rand) did not disclose by PBoC, we can only remove them from a basket of currencies.
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© 2011 Springer-Verlag Berlin Heidelberg
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Jiang, S., Xue, H., Li, Zx. (2011). A Sensitive Analysis on China’s Managing Float Regime. In: Wu, D., Zhou, Y. (eds) Modeling Risk Management for Resources and Environment in China. Computational Risk Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-18387-4_19
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DOI: https://doi.org/10.1007/978-3-642-18387-4_19
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