ANALYSIS OF DETERMINANTS INFLUENCE EXCHANGE RATE FOR RMB (CASE STUDY IN PEOPLE'S BANK OF CHINA IN 2007-2014)

Abstract

The purpose of this research was to investigate the factors influencing the RMB exchange rate with a case study of People’s Bank of China. This research consist three independent variables ( interest rate, gross domestic product, money supply) and one dependent variable ( RMB exchange rate). The researcher used quantitative research to process the research, and the data were collected by secondary data. Total 96 data used in this research. Multiple regression test, hypothesis test which included T- test (partial test) and F-test (simulataneously test) to analyze influence of independent variables towad the dependent variable. The data analysis use the SPSS 20.0 to generate results. The main findings of this research is that gross domestic product and money supply has significant influence toward RMB exchange rate; The three variables interest rate, gross domestic product and money supply has significant simulaneous influence toward RMB exchange rate. At the end of research, on the basis of theoretical analysis and empirical analysis, the author put forward some suggestions towards RMB exchange rate, in order to increase the RMB exchange rate of People’s Bank of China.