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Exchange rate co-movements and corporate foreign exchange exposures: A study on RMB

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  • He, Qing
  • Wang, Wenqing
  • Yu, Jishuang

Abstract

•Estimate the co-movements of large set of bilateral exchange rates/the RMB and explore their relationship with the firm-level exchange rate exposure in China•The co-movements of emerging market (EME) currencies have a weaker effect on exposure than the co-movements of developed market (DM) currencies•RMB’s internationalization reduces Chinese firms’ exposure to exchange rate fluctuations of EME currencies.

Suggested Citation

  • He, Qing & Wang, Wenqing & Yu, Jishuang, 2023. "Exchange rate co-movements and corporate foreign exchange exposures: A study on RMB," International Review of Financial Analysis, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finana:v:90:y:2023:i:c:s1057521923003472
    DOI: 10.1016/j.irfa.2023.102831
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    More about this item

    Keywords

    Exchange rate co-movements; Exchange rate exposure; RMB internalization;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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