How is the shadow exchange rate formed? The concept of shadow exchange rate was first proposed by economist Harberg in the 1960s, and its initial definition was the social welfare value (Welfare Value) of a unit of foreign exchange . In the later literature, evaluators usually define the shadow exchange rate as the economic value of a unit of foreign exchange (Economic Value), which is distinguished from the financial value of a unit of foreign exchange (Financial Value) and the market value of foreign exchange (Market Value).
The so-called shadow exchange rate refers to the exchange rate that can correctly reflect the real value of foreign exchange, that is, the shadow price of foreign exchange.
Shadow price shadow price refers to the fund manager reassessing the pricing objects held by the fund using market interest rates and transaction prices on each pricing day.