Study On The Relationship Between The RMB Exchange Rate And Interest Rates Linkage

Exchange rate and interest rate respectively represent the currency in the foreign market and domestic market prices, they are important tools, guide the rational allocation of resources is also governments to internal and external economic adjustment important monetary policy. Since China’s accession to the WTO in2001, with the further advance of economic globalization, the communication between our country and abroad have become more frequent, due to exchange rate system reform and the interest rate system reform in our country don’t synchronicity, caused our country RMB foreign revaluation pressure increasing, however due to reasons such as inflation, domestic internal value falling, thus caused the yuan value deviate from each other, will make the process of interest rate marketization, this article will study around this problem, hope to provide more for China’s market-oriented interest rate reform train of thoughtThe article expatiates the classical theory of exchange rate and interest rates, find out the theory basis of the relationship between the RMB exchange rate and interest rates. And then analyzes the correlation of reality, from the international balance of payments, the domestic price level, capital market, the credit amount four angles, respectively for the linkage of the RMB exchange rate and interest rate transmission mechanism to do the data analysis, combining theory with practice. In the empirical test, the1983-2013during the data statistical analysis, through a simple regression analysis, to detect the exchange rate and interest rate transmission mechanism in our country is formed, and further the cointegration test, but the results is the correlation between them is very low, the degree of marketization is not enough, and lack of coordination. To put forward the need to further deepen the marketization of interest rate, from the foreign exchange market, commodity market and capital market from three aspects to improve the linkage mechanism of exchange rate and interest rate, promote the healthy development of the market-oriented economy in our country.In this article, based on the linkage mechanism between exchange rate and interest rate, combining the actual level of our country, by adopting the combination of theory and empirical way, this mechanism in our country existing problems are discussed in this article, through the analysis of the various factors that affect interest rates and interest rate marketization reform to provide some idea of our country.