How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects
Global uncertainty and the COVID-19 pandemic have significantly impacted the integration of emerging economies into global financial markets. Post-pandemic, the Federal Reserve’s interest rate hikes have drawn investor attention to relatively independent and stable currencies. This study investigate...
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MDPI AG
2025-01-01
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| Series: | International Journal of Financial Studies |
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| Online Access: | https://www.mdpi.com/2227-7072/13/1/12 |
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| author | Changrong Lu Fandi Yu Jiaxiang Li Guanghong Zheng Lian Liu |
| author_facet | Changrong Lu Fandi Yu Jiaxiang Li Guanghong Zheng Lian Liu |
| author_sort | Changrong Lu |
| collection | DOAJ |
| description | Global uncertainty and the COVID-19 pandemic have significantly impacted the integration of emerging economies into global financial markets. Post-pandemic, the Federal Reserve’s interest rate hikes have drawn investor attention to relatively independent and stable currencies. This study investigates the sustained independence of the Renminbi by analyzing the spillover effects between the Renminbi and other major currencies in the context of the pandemic and USD interest rate hikes. By employing high-frequency data and cross-validating the results with low-frequency data transformed through Synchro Squeezing Wavelet Transform, we aimed to enhance the robustness of our findings. This analysis provides valuable insights for investors, highlighting the stability advantages of the Renminbi in the context of de-dollarization and global currency diversification. |
| format | Article |
| id | doaj-art-e8eb4c1cddce4078986c514c3f1f996c |
| institution | DOAJ |
| issn | 2227-7072 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj-art-e8eb4c1cddce4078986c514c3f1f996c2025-08-20T02:42:34ZengMDPI AGInternational Journal of Financial Studies2227-70722025-01-011311210.3390/ijfs13010012How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover EffectsChangrong Lu0Fandi Yu1Jiaxiang Li2Guanghong Zheng3Lian Liu4School of Economics, Nagoya University of Commerce and Business, Aichi 470-0193, JapanGraduate School of Asia-Pacific Studies, Waseda University, Tokyo 169-8555, JapanDepartment of Economics, State University of New York at Binghamton, Binghamton, NY 13902-6000, USAFaculty of International Media, Communication University of China, Beijing 100024, ChinaSchool of Management, Nagoya University of Commerce and Business, Aichi 470-0193, JapanGlobal uncertainty and the COVID-19 pandemic have significantly impacted the integration of emerging economies into global financial markets. Post-pandemic, the Federal Reserve’s interest rate hikes have drawn investor attention to relatively independent and stable currencies. This study investigates the sustained independence of the Renminbi by analyzing the spillover effects between the Renminbi and other major currencies in the context of the pandemic and USD interest rate hikes. By employing high-frequency data and cross-validating the results with low-frequency data transformed through Synchro Squeezing Wavelet Transform, we aimed to enhance the robustness of our findings. This analysis provides valuable insights for investors, highlighting the stability advantages of the Renminbi in the context of de-dollarization and global currency diversification.https://www.mdpi.com/2227-7072/13/1/12the COVID-19 pandemicthe Fed rate hikespillover effectsthe Renminbi independence |
| spellingShingle | Changrong Lu Fandi Yu Jiaxiang Li Guanghong Zheng Lian Liu How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects International Journal of Financial Studies the COVID-19 pandemic the Fed rate hike spillover effects the Renminbi independence |
| title | How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects |
| title_full | How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects |
| title_fullStr | How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects |
| title_full_unstemmed | How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects |
| title_short | How Has the Renminbi’s Role in Non-USD Currency Markets Evolved After COVID-19? An Analysis Based on Spillover Effects |
| title_sort | how has the renminbi s role in non usd currency markets evolved after covid 19 an analysis based on spillover effects |
| topic | the COVID-19 pandemic the Fed rate hike spillover effects the Renminbi independence |
| url | https://www.mdpi.com/2227-7072/13/1/12 |
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