Research On The Effect Of Exchange Rate Spillovers On RMB And Offshore Financial Markets

The prosperity and development of the RMB offshore market has become an important starting point for the internationalization of rmb.In the context of economic globalization,the research of RMB exchange rate in the offshore market and the spillover effect,can promote effective monetary authorities to make monetary policy and risk management plan,strengthen the supervision of departments in the offshore market,the financial supervision,so as to reduce the instability and the RMB offshore market speculation,stable in the bank with the offshore financial market exchange rate,and promote the coordinated development of different market exchange rate,for the development of RMB internationalization and lay a solid fortress.According to "raise problems,analyze problems and solve problems" idea,firstly,the basic theories of RMB interaction between onshore and offshore financial markets,international financial market that the RMB dynamic relation mechanism between onshore and offshore financial market.Secondly,using a combination of theoretical and empirical methods,through the establishment of VAR model and BEKK-GARCH model are discussed in the offshore market and the offshore market exchange rate and price spillover volatility spillover effects,the results of the study show that,in the price spillover effect,the RMB onshore spot rate as the basis of the exchange rate market,in the information center on the guiding effect,the offshore spot,offshore forwards significantly;offshore spot on the onshore spot,offshore forwards also have significant effect on the forward guidance.In the volatility spillover effect,the offshore spot and forward markets,and there are offshore forwards forward between the volatility spillover effect;but there is no obvious fluctuation spillover effect between the two spot market.At the same time,drawing lessons from international successful experience-the offshore financial market(Eurodollar,IBFs)of the US dollar,traces the course of its development,sums up experiences and lessons,and extracts the essence for us.Finally,according to the conclusion,put forward to promote the healthy development of the economy under the new normal,deepening reforms in financial market system,broaden the onshore offshore bank capital circulation channels and strengthen the onshore offshore financial coordination regulatory policy recommendations,in order to speed up the process of internationalization of the RMB to play a more important role.