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      A Study on the Influencing Factors of the RMB Central Parity Formation Mechanism

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      https://www.riss.kr/link?id=A106372199

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      The change of the central parity of RMB against USD has drawn wide
      attention both in China and abroad. At the beginning of 2017, the foreign
      exchange market has a certain pro-cyclicality, and market players are
      vulnerable to irrational expectations. The People's Bank of China (PBC)
      adjusts the formula for calculating its daily yuan reference rate at May 28,
      2017. PBC introduces the counter-cyclical adjustment factor aiming at
      reducing the herd behaviour in the foreign exchange market. However, the
      counter-cyclical adjustment factor led to the rapid appreciation of the
      central parity of RMB against USD. This article summarizes the contents
      and characteristics of the current central parity of RMB against USD
      formation mechanism, and analyzes the influencing factors of the RMB
      central parity formation mechanism.
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      The change of the central parity of RMB against USD has drawn wide attention both in China and abroad. At the beginning of 2017, the foreign exchange market has a certain pro-cyclicality, and market players are vulnerable to irrational expectations. T...

      The change of the central parity of RMB against USD has drawn wide
      attention both in China and abroad. At the beginning of 2017, the foreign
      exchange market has a certain pro-cyclicality, and market players are
      vulnerable to irrational expectations. The People's Bank of China (PBC)
      adjusts the formula for calculating its daily yuan reference rate at May 28,
      2017. PBC introduces the counter-cyclical adjustment factor aiming at
      reducing the herd behaviour in the foreign exchange market. However, the
      counter-cyclical adjustment factor led to the rapid appreciation of the
      central parity of RMB against USD. This article summarizes the contents
      and characteristics of the current central parity of RMB against USD
      formation mechanism, and analyzes the influencing factors of the RMB
      central parity formation mechanism.

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