This paper studies China's foreign exchange market before and after the 1994 unification of the official and swap exchange rates. Examining segmentation as well as linkages among the foreign exchange adjustment centers (FEACs) reveals that the linkages were not strong enough to eliminate or...

This paper studies China's foreign exchange system before and after the 1994 unification of the official and swap exchange rates. We analyzed the behavior of the official and overall swap rates and the swap rates of twelve local foreign exchange adjustment centers across the country....