Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)

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The Influence of RMB "Entering the Basket" on RMB Value and Exchange Rate Fluctuation

Authors
Guangdong Gu1, Hui Li1, *, Lu Wang1
1Chongqing Normal University, Chongqing, China
*Corresponding author. Email: 1778242352@qq.com
Corresponding Author
Hui Li
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-098-5_35How to use a DOI?
Keywords
The SDR; The value of the RMB; RMB exchange rate fluctuations; RMB internationalization; Synthetic control method
Abstract

Based on the research background of RMB joining SDR currency basket, this paper adopts synthetic control method and GARCH model to study the impact of RMB joining SDR currency basket on RMB value and exchange rate fluctuation. The findings are as follows: Compared with not to join the SDR, the renminbi to join the SDR reduces the degree of depreciation, its role in the stability have a suit period, then the market mechanism will make the RMB exchange rate back to normal levels. In addition, to join the SDR to make the RMB against the dollar is affected by the external shocks are lower, but its exchange rate volatility of the renminbi memory enhancement effect is not obvious, indicating that the renminbi to join the SDR on the fluctuation of exchange rate is not the direct result of new RMB in the SDR allocation, but a representation of indirect effect.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
10.2991/978-94-6463-098-5_35
ISSN
2352-5428
DOI
10.2991/978-94-6463-098-5_35How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Guangdong Gu
AU  - Hui Li
AU  - Lu Wang
PY  - 2022
DA  - 2022/12/27
TI  - The Influence of RMB "Entering the Basket" on RMB Value and Exchange Rate Fluctuation
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 289
EP  - 299
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_35
DO  - 10.2991/978-94-6463-098-5_35
ID  - Gu2022
ER  -