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PBoC rules out competitive yuan devaluation to gain trade edge

The PBoC said it will also start reporting additional foreign-exchange related data to the IMF in 2027 to improve transparency.

Reported · Written up by our desk · Central Banks

The People’s Bank of China said it has neither the need nor the intention to depreciate the Chinese yuan to gain a competitive advantage in international trade, according to a statement reported by Reuters, as cited by FXStreet.

The central bank emphasized it has never engaged in competitive currency devaluation and reiterated that it will allow market forces to play a decisive role in determining the yuan’s exchange rate, while also saying it does not set a predetermined exchange rate target or intervene in long term currency trends.

The PBoC also stressed there is no simple linear relationship between exchange rates and the current account balance, adding that external competitiveness does not depend solely on the currency’s value.

Finally, Beijing said it will begin reporting additional foreign exchange related data to the International Monetary Fund starting in 2027, aiming to improve transparency around exchange rate related data.

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