This article examines China's contemporary macroeconomic controls, highlighting the recent currency revaluation. We suggest that the July 2005 revaluation was inadequate in maintaining a level in line with market expectations, and it has had a negligible effect on exports, imports, job growth,...

This study examines the impact of political connections on a firm’s foreign exchange rate exposure. Using a sample of 2,204 Chinese listed firms from 2005 to 2018, we document that politically connected firms have less exposure to exchange rate risk than their otherwise identical non-connected...

We estimate the time-varying co-movements of a large set of bilateral exchange rates/the RMB and explore their relationship with the firm-level exchange rate exposure in China. We find that firms’ exchange rate exposure increases in periods of high exchange rate co-movements. The co-movements...

In emerging market economies, transmission of monetary policy through the foreign exchange market is complicated by the coexistence of financial restrictions and arbitrages. Using China as an example, we show that the coexistence of exchange rate interventions, capital controls and an...