Study On The Ownership Of Pricing Power In RMB Foreign Exchange Market

On August 11,2015,the People's Bank of China announced that the middle price of the yuan against the U.S.dollar was more based on the closing price of the previous day,and the middle price of the yuan was significantly reduced.Although this adjustment made the RMB exchange rate formation mechanism more market-oriented,the onshore exchange rate depreciated sharply in the short-term and appeared to be led by the offshore market.This triggered the market's discussion on the ownership of exchange rate pricing rights..In order to better understand the significance of this exchange rate reform and to understand the ownership of exchange rate pricing rights,it is necessary to study how the onshore exchange rate market,the Hong Kong offshore exchangeable exchange rate market,and the offshore non-deliverable exchange market have developed their guiding relationship.This is also an important content worth studying in the process of RMB internationalization.This paper adopts the latest data,applies the Granger causality test,and constructs the spillover index method to study the onshore and offshore RMB exchange rate markets.First of all,through the Granger causality test,we have analyzed the remuneration spillover effects of onshore and offshore markets,and found that there is a one-way reward spillover effect of offshore onshore,including the more stable spillover effect of the offshore non-deliverable exchange market on the onshore market.Then,a static and dynamic measure of the extent of spillover effects between onshore and offshore markets is made through the Spillover Index.The results show that the extent of the offshore market's spillover effect on the onshore market gradually increases with the deepening of the exchange reform,and the impact of the Hong Kong offshore deliverable market on the onshore market has exceeded the offshore non-deliverable exchange market.It is believed that with the gradual opening of capital projects and the development of offshore markets,the offshore market will play an increasing role in determining the price of RMB.