HOW CHINA TO U.S. FOREIGN EXCHANGE RATE RELATES TO U.S. INTEREST RATE AND BANK LOANS

Nguyen Van Hoa

Global Journal of Business Research, 2013, vol. 7, issue 4, 101-108

Abstract: This research investigates the interactions of U.S. interest rate, the different types of bank loans at all U.S. commercial banks, production activities and the foreign exchange rate between U.S. and China. This paper uses monthly data from 1981 to 2012 to show that some U.S. bank-loan-related macro-economic indicators are related to exchange rates between U.S. and China. The results demonstrate that U.S. short term federal funds rate, U.S. manufacturing capacity utilization, and three types of banks loans at all U.S. commercial banks could be good predictors and determinants of the overall exchange rate between these two important international currencies.

Keywords: Foreign Exchange; Interest Rate; Loans; U.S.; China. (search for similar items in EconPapers)
JEL-codes: F31 F33 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:gjbres:v:7:y:2013:i:4:p:101-108

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