Analyzing the Impact of Economic Variables on RMB Exchange Rate: A Multiple Regression Study

Abstract

In recent times, the exchange rate of the Renminbi (RMB) has been a persistent focus for scholars, business professionals, and policymakers. Amid China's swift economic development and the significant increase in its foreign exchange reserves, there have been persistent international demands for the appreciation of the RMB. Numerous theoretical and empirical studies have demonstrated that fluctuations in a nation's exchange rate can exert a profound and enduring influence on its economy. This paper compiles various data from 2000 to 2015 and conducts multiple regression analysis on six economic variables that impact the RMB exchange rate.