Exchange rate is one of the important factors that affect financing decisions of enterprises. With the acceleration of China’s opening up to the outside world, the transmission mechanism of the exchange rate through financial channel is more effective, and enterprises are more sensitive to exchange rate change in their decisions of external financing. Especially with the marketization of RMB exchange rate, how to avoid the adverse impact of exchange rate fluctuations is a difficult task faced by many Chinese export-oriented enterprises. This paper analyzes the spillover effect of RMB exchange rate transmitted through financial Channel and puts forward corresponding policies suggestions for Chinese enterprises.
Cite this paper
Gong, Y. and Du, C. (2021). Enterprises’ External Financing and Effect of RMB Exchange through Financial Channel. Open Access Library Journal, 8, e7704. doi: http://dx.doi.org/10.4236/oalib.1107704.
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