The Impact of The Instability of External Economic Policy on The Exchange Rate of Renminbi

Abstract

At present, the uncertainty of the international environment has increased significantly. It is of practical significance to study the exchange rate of RMB currencies from the perspective of external economic policy uncertainty to maintain the stability of the foreign exchange market. The article uses a panel quantile regression model to study the impact of external economic policy uncertainty on the exchange rate of RMB currency. The research shows that under the high quantile, the instability of external economic policy has a significant impact on the stability of the exchange rate. In this case, in order to maintain the relative stability of the exchange rate, the state should take into account the uncertainty of external economic policy in the formulation of corresponding policies.