A reinvestigation of the new RMB exchange rate regime

Lei Tian and Langnan Chen

China Economic Review, 2013, vol. 24, issue C, 16-25

Abstract: To examine the new renminbi exchange rate regime rigorously, we employ the STARTZ model to investigate renminbi nominal effective exchange rate behavior from mid-2006 to mid-2008. A managed float with a target central parity and without an explicit band best describes the daily exchange rate movement between renminbi and other currencies. We also find some peculiar attributes of the renminbi nominal effective exchange rate, including small conditional variance and stronger effects from government interventions in foreign exchange markets.

Keywords: BBC rule; RMB NEER; STARTZ model; Target zone; A managed float (search for similar items in EconPapers)
JEL-codes: C22 F31 F33 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:24:y:2013:i:c:p:16-25

DOI: 10.1016/j.chieco.2012.09.006

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