The Emergence of the RMB: A 'New Normal' for China's Exchange Rate System?
12 Pages Posted: 10 Jun 2018
Date Written: May 23, 2018
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
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