2009•Science Technology and EngineeringRequires access

Calculation of Real Effective Exchange Rate of RMB and Its Influence Towards Trade Balance

Zhimin Xie

Abstract

Real Effective Exchange Rate(REER) is one of the most important core variables in open economy.REER of RMB is estimated empirically by using quarterly data from 1995 to 2006.And the impact of REER's fluctuation towards trade balance is also analyzed to further explore the effective way to optimize the trade surplus.

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Key concepts: Renminbi, Effective exchange rate, Balance of trade, Economics, Exchange rate, Balance (ability), Monetary economics, International economics