Currency convertibility and linkage between Chinese official and swap market exchange rates Academic Article

abstract

• This article investigates the impact of currency convertibility under the current account on the informational linkage between official and swap market exchange rates for Chinese currency (renminbi). Findings indicate that currency convertibility increased the informational connection between the government's official exchange rate and the swap market exchange rate, exclusively traded by foreign investors, and thus improved the information content of renminbi exchange rates. Moreover, the results also suggest that more complete currency convertibility was needed for more informed renminbi exchange rates. Western Economic Association International.

authors

• Leatham, David

published proceedings

• CONTEMPORARY ECONOMIC POLICY

author list (cited authors)

• Yang, J., & Leatham, D. J.

citation count

• 12

complete list of authors

• Yang, J||Leatham, DJ

publication date

• January 2001

publisher

• Wiley  Publisher

published in

• CONTEMPORARY ECONOMIC POLICY  Journal

keywords

• China Foreign Exchange Market
• Cointegration
• Currency Convertibility
• Information Asymmetry

Digital Object Identifier (DOI)

• 10.1093/cep/19.3.347

start page

• 347

end page

• 359

volume

• 19

issue

• 3

URL

• http://dx.doi.org/10.1093/cep/19.3.347