Towards a floating RMB exchange rate regime.

The main challenge of China’s current exchange rate regime is that with large and frequent interventions, the RMB exchange rate cannot adequately respond to the changes in economic fundamentals. This will lead to unilateral exchange rate expectations and large-scale capital inflows or outflows. In a...

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Publicado en:China Economic Journal Vol. 11; no. 1; pp. 53 - 61
Autor principal: Bin, Zhang
Formato: Artículo
Publicado: Taylor & Francis Ltd Feb2018
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Towards a floating RMB exchange rate regime.
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        au: Bin, Zhang
        affil: CF 40
      su:
        China
        Capital movements
        Foreign exchange market
        Renminbi
        Foreign exchange rates
        Hard currencies
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          China
          Capital movements
          Foreign exchange market
          Renminbi
          Foreign exchange rates
          Hard currencies
      keyword:
        capital flow
        currency basket
        Exchange rate regime
        RMB
        capital flow
        currency basket
        Exchange rate regime
        RMB
      ab: The main challenge of China’s current exchange rate regime is that with large and frequent interventions, the RMB exchange rate cannot adequately respond to the changes in economic fundamentals. This will lead to unilateral exchange rate expectations and large-scale capital inflows or outflows. In addition, large and frequent foreign exchange market interventions have a negative impact on economic structural optimisation, RMB internationalisation, and foreign investment. Two strategies can be used to introduce a floating exchange rate system: one is a free-floating exchange rate, and the other is wide range fluctuation against a basket of currencies. The latter is a transitional option before introduction of the former: a free-floating exchange rate.
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      doctype: Article
      src: R
    language: English
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