The Impact of China's Exchange Rate Fluctuation on the Change of Foreign Exchange Reserves

2017 ◽  
Vol 19 (5) ◽  
pp. 2535-2550
Author(s):  
Zhuhua Jiang ◽  
◽  
Seong-Min Yoon
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Reserves ◽  
Exchange Rate Fluctuation ◽  
Rate Fluctuation ◽  
The Impact

scholarly journals The Impact of Interbank Offered Rate on the Exchange Rate of the Chinese Yuan Renminbi Against the Sterling Pound: Evidence from Libor and Shibor

2018 ◽  
Vol 14 (22) ◽  
pp. 173
Author(s):  
Junchi Shi ◽  
Maoguo Wu
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Rate Fluctuation ◽  
Time Series Approach ◽  
Balance Of Trade ◽  
The Exchange Rate ◽  
The Impact ◽  
The Empirical Analysis ◽  
Foreign Exchange Trading

United Kingdom, as the world’s fifth largest economy, maintains good cooperation relation with China in the area of economy and trade. As the world’s fourth largest foreign exchange trading currency, the exchange rate fluctuation of the sterling pound has an important economic impact on the world’s foreign exchange market and it also has a significant impact on the trade with China. There are many factors that influence the exchange rate. By using time series approach, this paper analyzes the impact of two main variables, Libor and Shibor, and five common economy variables, inflation rate, interest rate, balance of trade, GDP and money supply, on the change of the sterling pound exchange rate. The results of the empirical analysis show that five common factors have significant relation with exchange rate. For the two main variables, Libor has a strong correlation with the sterling pound exchange rate, but Shibor has no such relation. Meanwhile, this paper focuses on analyzing the possibility of arbitrage according to the empirical results. It was found that the model for the impact on exchange rate in this paper cannot predict future exchange rate. As a result, short-term arbitrage prediction cannot be made.

Exchange-rate fluctuation and pricing behavior in China’s wood-based panel exporters: evidence from panel data

2017 ◽  
Vol 47 (10) ◽  
pp. 1392-1404 ◽  
Author(s):  
Fang Wang ◽  
Zhonghua Yin ◽  
Jianbang Gan
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
International Market ◽  
Market Model ◽  
Exchange Rate Fluctuation ◽  
Pricing To Market ◽  
Rate Fluctuation ◽  
Pricing Behavior ◽  
The Exchange Rate ◽  
The Impact

As the largest wood-based panel producing and exporting country, China has experienced sharp reductions in the growth rate of its wood-based panel exports because of pressure caused by exchange-rate fluctuation. These fluctuations were exacerbated by the global financial crisis. China’s wood-based panel exporters need to adjust their pricing strategy to cope with the changes of international market conditions. Thus, it is necessary to investigate the relationship between exchange-rate fluctuation and the pricing behavior of China’s wood-based panel exporters. To evaluate the impact of the exchange rate on China’s wood-based panel export prices across multiple destinations, a pricing-to-market model incorporating panel data was used. The empirical results suggest that although complete exchange-rate pass-through exists widely in China’s wood-based exports, China’s fiberboard and plywood exporters tended to adopt different pricing strategies in the international wood-based panel market during the post-crisis era. China’s fiberboard exporters often used the pricing-to-market model to determine prices in the main export destination countries, while China’s plywood exporters tended to amplify the exchange-rate effects. This indicates that China’s plywood exporters have stronger international market power than China’s fiberboard exporters, partly because China’s plywood exporters have more advantages in terms of skilled labor.

Sign in / Sign up

Export Citation Format

Share Document