People's Bank of China Outlines Policy Stance on RMB Exchange Rate

36Kr reports that the People's Bank of China (PBOC) published an article stating that, as a key price in the financial market, the RMB exchange rate has long been closely watched by all sectors, with recent discussions intensifying. The PBOC clarifies its policy stance on the RMB exchange rate below. China implements a managed floating exchange rate regime based on market supply and demand, referenced to a basket of currencies, while consistently allowing the market to play a decisive role in exchange rate formation. Over the past two decades, the RMB has experienced two-way fluctuations; since 2010, it has gone through multiple cycles of appreciation and depreciation, with more pronounced two-way fluctuation characteristics and enhanced elasticity. China's trade development stems from improvements in industrial international competitiveness. There is no need or intention for China to seek trade competitive advantages through exchange rate depreciation, nor does China engage in competitive currency devaluation.