Actual intervention and verbal intervention in the Chinese RMB exchange rate

Hu, M, Li, Y, Yang, J and Chao, C 2016, 'Actual intervention and verbal intervention in the Chinese RMB exchange rate', International Review of Economics and Finance, vol. 43, pp. 499-508.


Document type: Journal Article
Collection: Journal Articles

Title Actual intervention and verbal intervention in the Chinese RMB exchange rate
Author(s) Hu, M
Li, Y
Yang, J
Chao, C
Year 2016
Journal name International Review of Economics and Finance
Volume number 43
Start page 499
End page 508
Total pages 10
Publisher Elsevier BV
Abstract Central bank communication has become a more and more important instrument for the monetary authorization to intervene its exchange rate. This paper investigates the impact of both verbal and actual intervention on the exchange rate of China's currency, which has become the second-used currency in international trade settlement. The empirical evidence indicates that the central bank communication can influence the exchange rate, but the efficient is quite weak. Moreover, the effect of verbal intervention on the exchange rate of the RMB is weaker than that of actual intervention. One possible explanation is that most of the statements made by the governor of central bank on the RMB exchange rate are neutral in China. Overall, this study identifies the difference between the actual and verbal intervention in exchange rate in China, the largest emerging economy in the world.
Subject Banking, Finance and Investment not elsewhere classified
Keyword(s) Actual intervention
Central bank communication
Exchange rate
RMB
DOI - identifier 10.1016/j.iref.2016.01.011
Copyright notice © 2016 Elsevier Inc.
ISSN 1059-0560
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 3 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 0 times in Scopus Article
Altmetric details:
Access Statistics: 12 Abstract Views  -  Detailed Statistics
Created: Thu, 23 May 2019, 08:44:00 EST by Catalyst Administrator
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us