PBOC: China has no need or intention to devalue the yuan for trade advantage

36Kr reports that the People's Bank of China (PBOC) stated in its policy stance on the RMB exchange rate that China neither needs nor intends to devalue the currency to gain a trade advantage. A key structural shift in China's trade over recent years has been a marked decline in sensitivity to exchange rate fluctuations. As a responsible major economy, China has never engaged in competitive currency devaluation or allowed the RMB to depreciate to boost exports during multiple rounds of intense external shocks. During the 1990s Asian financial crisis, while some countries saw sharp currency devaluations, the Chinese government committed to not devaluing the RMB, playing a vital role in maintaining regional economic and financial stability. During the 2008 global financial crisis, as many currencies depreciated sharply against the dollar, the RMB remained largely stable. In recent years, amid trade wars launched by certain countries and aggressive rate hikes by the Federal Reserve that have put non-dollar currencies under significant depreciation pressure, the PBOC has timely implemented macro-prudential policies to prevent excessive RMB depreciation.