The People’s Bank of China has published a policy statement on the renminbi exchange rate, saying China follows a managed floating exchange rate regime based on market supply and demand and referenced to a basket of currencies. The central bank said it has exited regular foreign-exchange intervention since 2017.
In the statement, the PBOC said China has no intention of gaining a trade competitive edge through devaluation and does not engage in competitive currency depreciation. It added that macro-prudential tools were used only under major external shocks, including the pandemic and the tariff war in April 2025, to prevent short-term overshooting.
The central bank also cited exchange-rate data, saying the renminbi has appreciated 23% against the U.S. dollar since the 2005 exchange-rate reform, while its nominal effective exchange rate has risen by more than 50%. Since the start of 2025, the renminbi has appreciated about 9% against the dollar. The PBOC also said it is a misinterpretation and misuse to treat the IMF’s External Balance Assessment as official evidence that the renminbi is undervalued, adding that reducing global imbalances requires joint action by deficit and surplus countries.
China’s central bank has released a policy statement on the renminbi exchange rate, saying the country maintains a managed floating exchange rate regime based on market supply and demand and adjusted with reference to a basket of currencies. According to the People’s Bank of China, regular foreign-exchange intervention ended after 2017.
The PBOC said China has no intention of seeking a trade competitive advantage through currency devaluation and does not engage in competitive devaluation. It said macro-prudential tools were used only during major external shocks, including the pandemic and the tariff war in April 2025, to guard against short-term overshooting.
Exchange-rate data and IMF reference
The central bank said that since China’s 2005 exchange-rate reform, the renminbi has appreciated 23% against the U.S. dollar, while the nominal effective exchange rate has risen by more than 50%. Since the start of 2025, the renminbi has gained about 9% against the dollar.
The PBOC also said it is a misinterpretation and misuse to treat the IMF’s External Balance Assessment, or EBA, as official evidence that the renminbi is undervalued. It added that easing global imbalances requires joint action by both deficit countries and surplus countries.
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