Economic Factors that Determine Currency Exchange Rate between Baht and Yuan

Abstract

     The purpose of the research is to study the exchange rate system between Baht and Yuan and to study the economic factors that determine the currency rate between Baht and Yuan. The researchers use secondary data analysis and time series data from 2006 to 2020 (180 months). The data are statistically analyzed by mean, minimum, maximum standard deviation, which is computed by the Statistical Package for the Social Sciences program (SPSS).

     The findings revealed as follows: the economic factors that are Interbank Rate (IBR), Inflation Rate (INF), Real Effective Exchange Rate (REER), and SET Index (SET), are influencing the exchange rate of Baht to Yuan at the level of statistical significance level 0.05. The results support hypothesis—the economic factors that influence currency exchange rates of Baht to Yuan. However, the export value of China (XCN) and the Current Account (CA) are not influenced by the currency exchange rate of Baht to Yuan at a statistical significance level of 0.05. So that the results reject hypothesis. This study supports the investors who do international trading for the purpose of buying and selling products or services such as trade, investment, businesses, and the tourism sector. For this reason, it makes it possible for the exchange rate between Baht and Yuan based on economic factors to be predictable.

Keywords: 1.Economic factors 2.Currency exchange rate 3.Baht 4.Yuan