Acta Scientific Computer Sciences

Research Article Volume 3 Issue 7

Using Multiple Regression Model and Principal Component Analysis on Exchange Rates: The Case of Chinese RMB

Zejun Hou1, Chenyue Hong1, ZY Chen1, Yahui Meng1* and Timothy Chen2*

1Guangdong University of Petrochem Technology, Peoples R China, China
2Division of Engineering and Applied Science, California Institute of Technology, Pasadena, CA, USA

*Corresponding Author: Yahui Meng, Guangdong University of Petrochem Technology, Peoples R China, China. E-mail: mengyahui@gmail.com and Timothy Chen, Division of Engineering and Applied Science, California Institute of Technology, Pasadena, CA, USA.

Received: June 02, 2021; Published:

Abstract

With China's economic development, RMB exchange rate plays an increasingly important role in China’s economic development. In recent years, due to the changes in the form of international relations and domestic policies, especially after the RMB has become a world currency, the exchange rate of RMB reflects the external value of RMB and the strength of China’s economic strength, which will also have different effects on the international economy and domestic economy. Based on the relevant data of RMB exchange rate with other common currencies from April 17 to May 16, this paper takes RMB exchange rate as the research object, uses MATLAB to build charts and models to judge the trend of RMB exchange rate and get the real effective exchange rate, and uses principal component analysis to analyze the seven major Factors Affecting RMB exchange rate from 2009 to 2018. Then the multiple regression model was constructed for the key factors. Finally, the key factors combined with the domestic and international form of grouping analysis, gives the relationship between the RMB exchange rate and the influencing factors, and finally comes to the conclusion that the RMB exchange rate has the characteristics of two-way volatility, and the development of RMB exchange rate has the trend of steady increase.

Keywords: Exchange Rate; Chinese RMB; Principal Component Analysis; Multiple Regression Model

Bibliography

  1. Li Yayun., et al. “Analysis on the trend of RMB exchange rate from 1994 to 2020”. China market 8 (2021): 5-6.
  2. Fang Xu., et al. “Influencing factors of RMB exchange rate fluctuation under RMB internationalization”. Journal of Chifeng University (NATURAL SCIENCE EDITION) 35.7 (2019): 44-47.
  3. Liu Hanqi. “Analysis of the factors influencing the change of RMB exchange rate”. Beifang Economic and Trade Journal 3 (2021): 131-133.
  4. Zhu Mengwen. “Analysis on the influencing factors of RMB exchange rate -- Based on Bayesian multiple regression model”. Guangxi Quality Supervision Guide 10 (2019): 217-218.
  5. Li Shilong. “Analysis on the influencing factors of RMB exchange rate based on multiple linear regression model”. Investment and Cooperation 3 (2021): 68-69.

Citation

Citation: Timothy Chen., et al. “Using Multiple Regression Model and Principal Component Analysis on Exchange Rates: The Case of Chinese RMB". Acta Scientific Computer Sciences 3.7 (2021): 41-45.

Copyright

Copyright: © 2021 Timothy Chen., et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.




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Acceptance rate35%
Acceptance to publication20-30 days

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