A Sensitive Analysis on China’s Managing Float Regime

  • Shan JiangEmail author
  • Han Xue
  • Zhi-xiang Li
Conference paper
Part of the Computational Risk Management book series (Comp. Risk Mgmt)


In this paper, according to the PBoC’s official statement, based on the data from 2005 to 2010, a basket of currencies is constructed with the goal of stabilizing the trade volume. The time series of this basket of currencies is compared with the ones of RMB by means of Eview 6.0. As a result, it is concluded that the trend of RMB exchange rate is propelled by supply and demand in the market under the current managing float regime, which is an inevitable outcome of the “the dilemma of PBoC” and surely, not manipulated by the Chinese government.


A basket of currencies RMB Sensitive analysis The exchange rate elasticity of trade Uncertainty 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  1. 1.School of Management and EconomicsBeijing Institute of TechnologyBeijingPeople’s Republic of China

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