TITLE:
RMB Internationalization, FTA and Exchange Rate Pass-Through
AUTHORS:
Fengze Han
KEYWORDS:
RMB Internationalization, FTA, Exchange Rate Pass-Through, Import Price
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.1,
January
12,
2023
ABSTRACT: Based on the monthly
import data classified by HS code from 2008 to 2018, this paper analyzed China’s
exchange rate pass-through (ERPT) and the effects
of RMB internationalization on it by constructing theoretical model and
econometric model. The research shows that the increase of RMB
internationalization reduces China’s ERPT and stabilizes import price and
reduces the risk of exchange rate fluctuations that our enterprises are exposed
to significantly. In the extended analysis, it is found that the signing of
Free Trade Agreements further strengthens the impact of RMB
internationalization on exchange rate pass-through, means two strategies of RMB
internationalization and FTA can promote each other.