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On the Chinese's Exchange Rate Regime: A Different Approach

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  • Marco Mele

    (University of Teramo, Italy.)

Abstract

This paper will prove, through a financial and econometric model, a different estimation approach on the Chinese' basket peg. In particular, this study proposes a new system for calculating the numeraire in exchange rates of the major currencies present in Chinese basket-peg. We will analyze the values of exchange rates in the financial markets, particularly in the Forex market and Binary options. Then, after choosing the three currencies that have characteristics of low volatility, we will find our numeraire that will be determined by average every 30 minutes. Finally, we will do an econometric estimation.

Suggested Citation

  • Marco Mele, 2019. "On the Chinese's Exchange Rate Regime: A Different Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 1-7.
    • Handle: RePEc:eco:journ1:2019-01-1
    as

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    References listed on IDEAS

    as
    1. Jeffrey A. Frankel & Shang-Jin Wei, 2007. "Assessing China's exchange rate regime [‘Working with the IMF to strengthen exchange rate surveillance’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 22(51), pages 576-627.
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    6. James Laurenceson, "undated". "China�s exchange rate policy: the case against abandoning the dollar peg," EAERG Discussion Paper Series 0105, School of Economics, University of Queensland, Australia.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Exchange Rate Regime; Chinese Basket peg; Forex Market; Binary options.;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

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