Research On The Linkage Between Offshore And Onshore RMB Exchange Rate Market

In the process of promoting the internationalization of RMB,the offshore RMB market has been fully developed.The relationship between offshore and the RMB exchange rate on the shore has been strengthened.In August 11,2015,the people's Bank of China announced the improvement of the middle price of the RMB exchange rate against the dollar.This paper will be based on GARCHBEEK(1,1)model,this paper respectively before and after the “8·11” reform of the offshore and onshore different term structure of linkage relationship between the RMB exchange rate market research.The study showed that in the "8·11" exchange rate reform before the deadline offshore RMB forward exchange rate is shorter than the volatility spillover effect of the spot exchange rate,onshore offshore RMB forward exchange rate for a longer period of volatility spillover effect,while the offshore renminbi spot exchange rate and onshore RMB spot exchange rate has two-way volatility spillover effect.After the "8·11" exchange rate reform,the offshore RMB forward exchange rate and the offshore RMB spot rate of each term have little spillover effect on the spot exchange rate of the onshore RMB,and the spot exchange rate of the onshore RMB has an enhanced influence on the offshore market.Through this study,provide a reference to the day after the RMB faces will gradually open the capital account after the problems encountered in the process of RMB exchange rate market gradually in the analysis of difficulties and challenges.This paper analyzes the experience and challenges brought by the remittance reform,and provides experience for the gradual marketization of the future exchange rate system.The comprehensive national strength of China,in the era of peace power influence is often achieved byfinancial means,and the construction of the offshore market will expand China's influence in the overseas market,explore the construction of a suitable for China's offshore market is a necessary link now gradually promote the internationalization of the RMB.By analyzing the impact of "8·11" reform on offshore and onshore RMB market in recent years,and the interaction between offshore and onshore RMB direct fluctuations,it is of great practical significance.