PBOC reiterates no intention to gain trade competitiveness through depreciation

The materials state that the People's Bank of China issued "On the CNY exchange rate policy position."

China implements a managed floating exchange rate regime based on market supply and demand, with reference to a basket of currencies for adjustment.

The materials state that, 2017 years later, China exited routine foreign exchange intervention.

The central bank stated that China has no intention of gaining trade competitiveness through depreciation and never engages in competitive currency depreciation.

The materials state that macroprudential tools are used only to prevent short-term overshooting amid major external shocks such as the pandemic, 2025 years April tariff wars and other major external shocks.

The materials state that 2005 since the exchange rate reform in CNY against USD has appreciated cumulatively by 23%, while the nominal effective exchange rate has appreciated by more than 50%；2025 since USD against 9%。

The central bank pointed out that treating the IMF's external balance assessment conclusions as the official basis for determining that CNY is undervalued constitutes a distortion and misuse.

The central bank stated that mitigating global imbalances requires joint action by deficit countries and surplus countries.