Empirical Test on Impact Factors of Exchange Rate of RMB

From the perspectives of four theories(theory of purchasing-power parity,theory of interest rate parity,theory of balance of payment,and theory of Balassa-Samuelson effect),VAR model(constituted by cointegration variables) was established by choosing respective variables.And then the shock effect and contributions the foreign exchange reserve and Sino-US relative labor productivity imposed on exchange rate of RMB were anylized by using impulse response function and variance decomposition.Results showed that in the long run,while the changes of Sino-US relative labor productivity have greater influence on the exchange rate of RMB,the changes of the foreign exchange reserve have a relatively weaker impact on the exchange rate of RMB.