An Analysis Of The Correlation Between RMB Exchange Rate Fluctuation And Short-term International Capital Flow

With the acceleration of economic integration and the process of Global trade integration,the flow of international capital in the short term has become more frequent in recent years.Short-term international capital imports and exports to countries are relatively more convenient and more concealed.In recent years,China has been implementing capital controls system but with China's capital account opening and deepening the process of marketization of interest rates,short-term international capital flow in China is still very common,but the impact of the economic and trade short-term international capital of a country is elusive and difficult to control.So in this situation,China should be more on short-term international capital flows to do the monitoring work and reasonable guide.At the same time,China's exchange rate reform continues to deepen,the fluctuation of China's exchange rate also has an important impact on the short-term international capital flow.Therefore,there is a lot of uncertainty about the relationship between the two and the interaction between them.This paper mainly analyzes the relationship between them,and gives the corresponding opinions and suggestions,so that their influence on each other is beneficial,rather than excessive or harmful.The data in this study for a total of 64 sets of data,correlation between the time span can better analyze the short-term international capital flows and the volatility of RMB exchange rate,the selection of data from the beginning of 2000 to the end of 2016,for the 64 sets of data to facilitate data collection and calculation of the average monthly values composed mostly by.In the following chapters,we mainly divide into six chapters to discuss the correlation between short-term international capital flows and the RMB exchange rate.The main body of this paper first gives the definition of the international capital and briefly introduces the related concepts of short-term international capital and RMB exchange rate.For example,the concept,division and causes of short term international floating capital.Meanwhile,it expounds four theories of exchange rate determination,including purchasing power parity theory,theory parity theory,asset market theory and RMB exchange rate expectation.Secondly,the volatility of the RMB exchange rate and the flow of short-term international capital are qualitatively analyzed.The volatility of the RMB exchange rate of the first write mainly about definition of the RMB exchange rate and RMB exchange rate fluctuations,the short-term capital flows in China since 2000,showing two distinct characteristics in this period of short-term international capital flows,the first point is the fluctuation of the scale and more large-scale operation characteristics the second characteristic is the flow of increasingly sharp.Finally,it illustrates the correlation between the RMB exchange rate fluctuation and the short-term international capital flow in combination with the actual situation.After a brief introduction to the reality,we separately analyze their influence on each other.The main ways of short-term international capital fluctuation to the RMB exchange rate include direct and indirect effects.Finally,through empirical analysis,the relevance of the two is proved again.Finally,some suggestions and suggestions are put forward.The process of interest rate marketization should deepen and broaden its progress and deepen its development.The short-term international capital flow monitoring and supervision to the introduction of appropriate regulations to promote the work,strengthen the close contact with foreign countries or regions,the government attaches great importance to economic cooperation in related fields and relevant international organizations to develop policies and suggestions to promote the gradual opening of the capital account.