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PBoC rejects yuan undervaluation claims

Commerzbank said the PBoC also tied export performance to industrial competitiveness and noted reserves were about USD 3.40tn as USD/CNY eased to 6.70.

Reported · Written up by our desk · Central Banks

Commerzbank’s FX team highlighted that the People’s Bank of China rejected claims that the yuan is undervalued, arguing that export strength reflects industrial competitiveness rather than currency manipulation, according to FXStreet.

FXStreet also reported that the PBoC said there is no linear link between the exchange rate and the current account balance, and that past yuan depreciation did not accelerate gains in China’s export market share.

Commerzbank noted the PBoC will begin reporting foreign exchange operations to the IMF starting in 2027, and FXStreet said China’s reserves slipped to about USD 3.40tn.

In currency trading, FXStreet said USD/CNY fell about 30 pips to 6.70, while USD/CNH was little changed around 6.70.

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