People's Bank of China Reaffirms No Intent for Currency Devaluation
- Reports
- 12
- Developments
- 2
- Repetition
- 83%
New informationRepeats or wire copies
What happened
The People's Bank of China released a policy statement reaffirming its foreign exchange stance. The PBOC stated that China has neither the need nor the intention to gain trade advantages through currency devaluation, stressing that the country has never resorted to competitive devaluation. The statement was issued amid increased discussions regarding the yuan's valuation.
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Why it matters
The PBOC argued that China's export strength is rooted in industrial competitiveness rather than exchange rates. The statement cited that from 2020 to 2021, China's share of global exports increased by 1.7 percentage points even as the RMB appreciated by about 9 percent against the U.S. dollar.
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Who's involved
- People's Bank of ChinaCentral bank of China, managing the yuan's exchange rate and executing national economic policy
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EuropeSpeculative
Europe might see reduced trade friction risk due to the denial of competitive devaluation.
- European CommissionSpeculative
The European Commission might see reduced trade friction risk due to the denial of competitive devaluation.
How it developed
Newest first. Tap a step to see who reported it.PBOC released a new policy statement concerning foreign exchange.1 source
PBOC reaffirmed its stance on foreign exchange policy.1 source
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The entities involved
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People's Bank of China
central bank of the People's Republic of China
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Beijing
capital city of China
Related events
- The People's Bank of China (PBOC) issued a policy statement in Beijing on January 1, 2025.
- PBOC Governor Pan Gongsheng announced policy direction affecting foreign financial institutions.
- The People's Bank of China utilized data from the Bank for International Settlements to inform its stance on RMB appreciation.
- The People's Bank of China adopted a managed floating exchange rate regime, where rate formation relies on market supply and demand.
- The People's Bank of China is actively pushing for Shanghai to achieve the status of an international financial center.