The Emergence of the RMB: A 'New Normal' for China's Exchange Rate System?

12 Pages Posted: 10 Jun 2018

See all articles by Frederik Kunze

Frederik Kunze

University of Goettingen (Gottingen)

Tobias Basse

Norddeutsche Landesbank (NORD/LB)

Christoph Wegener

IPAG Business School

Markus Spiwoks

Ostfalia Hochschule für angewandte Wissenschaften - Faculty of Business Administration

Date Written: May 23, 2018

Abstract

We investigate RMB pricing differentials for onshore and offshore trading. Testing for long memory, we find strong persistence in the pricing differential. Hence, the Chinese FX market in its bipolarstructure still lacks basic conditions for perfectly integrated markets.

Keywords: CNY, CNH, RMB internationalization, Market integration, Emerging markets

JEL Classification: F31, F33, G18, C58

Suggested Citation

Kunze, Frederik and Basse, Tobias and Wegener, Christoph and Spiwoks, Markus, The Emergence of the RMB: A 'New Normal' for China's Exchange Rate System? (May 23, 2018). Available at SSRN: https://ssrn.com/abstract=3183770 or http://dx.doi.org/10.2139/ssrn.3183770

Frederik Kunze (Contact Author)

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Tobias Basse

Norddeutsche Landesbank (NORD/LB) ( email )

Friedrichswall 10
Hannover, 30159
Germany

Christoph Wegener

IPAG Business School ( email )

184 BD Saint Germain
Paris, 75006
France

Markus Spiwoks

Ostfalia Hochschule für angewandte Wissenschaften - Faculty of Business Administration ( email )

Wolfenbüttel, 38302
Germany

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