 Recent renminbi policy and currency co-movementsRobert McCauley and Chang Shu Journal of International Money and Finance, 2019, vol. 95, issue C, 444-456 Abstract: This study investigates how variation in Chinese authorities’ renminbi management since the August 2015 exchange rate reform maps onto variation in the co-movement between the renminbi with regional and other emerging market currencies. We first identify three post-reform periods of RMB management: transition, basket management and countercyclical management. Across these periods, the reaction of the official “fixing” rate to market movements differed significantly. The co-movement with regional and Latin American currencies peaked in the basket period, when the management was most multilateral, making it possible to discern a renminbi zone in this period. By contrast, the decline in co-movement in the countercyclical management period since May 2017 leaves it premature to speak of a renminbi bloc. The dependence of the co-movements on renminbi management has important implications for renminbi internationalisation. Keywords: Exchange-rate determination; Renminbi policy; Renminbi zone; Spillovers; Renminbi internationalisation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:95:y:2019:i:c:p:444-456 DOI: 10.1016/j.jimonfin.2018.03.006 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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