The People's Bank of China has released its stance on the RMB exchange rate policy, with no intention of gaining trade competitive advantage through depreciation

The People's Bank of China has released the "Policy Position on the Renminbi Exchange Rate", clarifying that China has implemented a managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, and has withdrawn from normalized foreign exchange intervention since 2017. China has no intention of gaining trade competitive advantage through depreciation, and has never engaged in competitive currency devaluation. It only uses macroprudential tools to prevent short-term overshoot under major external shocks such as the pandemic and the April 2025 tariff war. Since the exchange rate reform in 2005, the RMB has appreciated by 23% against the US dollar, and the nominal effective exchange rate has appreciated by over 50%; Since 2025, the cumulative appreciation against the US dollar has been about 9%. The central bank pointed out that using the conclusion of the IMF External Balance Assessment (EBA) as the official basis for RMB undervaluation is a misinterpretation and misuse, and alleviating global imbalances requires joint action from deficit and surplus countries. (Source: People's Bank of China)