People's Bank of China confirms commitment to market-driven RMB exchange rate
What happened
The People's Bank of China stated that China remains committed to letting market forces play a decisive role in determining the RMB exchange rate. The central bank confirmed that it adopts a managed floating exchange rate regime based on market supply and demand, referencing a basket of currencies. The People's Bank of China noted that the nominal effective exchange rate calculated by the Bank for International Settlements has appreciated over 50 percent since 2005.
From en.people.cn
Why it matters
The People's Bank of China emphasized that China has no intent to gain competitive advantages through currency devaluation. The central bank reported that the RMB has strengthened cumulatively by 23 percent against the U.S. dollar since 2005.
From en.people.cn
Who's involved
- People's Bank of ChinaCentral bank of China managing the RMB exchange rate
- Bank for International SettlementsInternational financial institution providing data on RMB exchange rate
- ChinaNation whose currency, the RMB, is subject to the managed floating regime
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.
- ChinaSpeculative
RMB appreciation could affect China's competitive position and trade growth.
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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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Bank for International Settlements
international financial institution owned by central banks
Related events
- The People's Bank of China (PBOC) issued a policy statement in Beijing on January 1, 2025.
- The People's Bank of China (PBOC) issued a policy statement regarding foreign exchange on October 10, 2026.
- PBOC Governor Pan Gongsheng announced policy direction affecting foreign financial institutions.
- BIS data shows growth in foreign exchange turnover.