Author(s)

Hongduo Cao^*, Zerui Guo, Ying Li^*, Zhouzhou Ran

Sun Yat-sen Business School, Sun Yat-sen University, Guangzhou, China.

The optimal threshold strategy is put forward for establishing a suitable network for analyzing the correlation among the different exchange rates. The 33 currencies of the world’s major countries and regions are analyzed by the method of network analysis, and the multilateral exchange rate correlation network is established based on the optimal threshold. Combining with geographical features and the exchange rate regime, it is found that the international currency has obvious community structure, which is composed of three levels: the core currency area, the arbitrage currency area and the shadow currency area. The conclusion reveals the structural characteristics of the Jamaica international monetary system.

Exchange-Rate Relationships, Correlation Networks, Complex Networks, Geopolitical Features

Cao, H. , Guo, Z. , Li, Y. and Ran, Z. (2020) The Relationship Structure of Global Exchange Rate Based on Network Analysis. Journal of Mathematical Finance, 10, 58-76. doi: 10.4236/jmf.2020.101006.