Empirical Study on Relationship Between RMB Exchange Rate and House Price After RMB Joins SDR (Special Drawing Rights)

Abstract

Real effective exchange rate of RMB released by Bank for International Settlements and monthly data on housing prices issued by National Bureau of Statistics were analyzed using Eviews software in the paper. Stationary test is conducted. With this as basis, the VAR (Value at Risk) model is created and the Granger causality of the model is elaborated. Results show that the real estate price serves as the Granger causation of RMB exchange rate.