A Study On The Spillover Effect Of RMB Exchange Rate In Onshore And Offshore Markets

China's RMB has attracted worldwide attention since it joined SDR in October 2016.China's economic level has gradually increased its influence in the world,not only accelerating the process of RMB internationalization,but also improving the exchange rate mechanism.Our country is constantly exploring and improving the reform of RMB exchange rate system.Among them,the latest "811 exchange rate reform" is of profound significance.This exchange rate reform has a great impact on the economy,and has a profound impact on China's offshore and offshore RMB exchange rate.At the same time,the development of RMB overseas market is also accelerating.At present,scholars from all over the world are also actively discussing the issue of offshore RMB market with China.Therefore,in order to promote the internationalization of RMB more effectively,it is necessary to study the spillover relationship between the exchange rate of RMB onshore market and offshore market,which is of great significance both for the accurate understanding of the current economic situation and for the prediction of the future.This paper first gives an overview of the onshore and offshore markets of Renminbi,then introduces the basic theory and spillover effects of the interrelationship between onshore and offshore markets.Taking the "811 exchange rate reform" as the time node,the paper divides the time into two periods,and explores how the interaction between onshore and offshore markets of Renminbi changes before and after the exchange rate reform.This paper studies the data of the change of the trend of the onshore and offshore RMB exchange rates in different periods of exchange rate reform,establishes the VAR model,uses stationarity test,Granger causality test and other methods to analyze the price spillover effect of the onshore and offshore RMB exchange rates,and uses the BEKK-GARCH model to analyze and discuss the fluctuation of the onshore and offshore markets.Spillover effect.Based on the analysis of the interaction between domestic and foreign markets,this paper provides theoretical and empirical basis for China's macro exchange rate risk management,in order to formulate more targeted and effective exchange rate management measures,and strengthen the deeper links and reconciliation between the onshore and offshore markets.