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People's Bank of China defends renminbi exchange rate policy
The People's Bank of China (PBOC) has issued a formal policy statement regarding the renminbi exchange rate, asserting that the country has no intention of using currency depreciation to gain trade advantages. The central bank emphasized its commitment to a managed floating exchange rate system based on market supply and demand and a basket of currencies.
The statement comes amid critical trade negotiations between China and the European Union. European policymakers have increasingly attributed trade imbalances to a weak renminbi, with some leaders suggesting the currency is undervalued by as much as 25% to 30%. In contrast, the PBOC argued that global economic imbalances stem from structural issues, such as international division of labor and fiscal deficits in certain nations, rather than unilateral currency manipulation.
The PBOC also addressed international assessments, noting that methods for evaluating equilibrium exchange rates are often immature and that current claims of undervaluation are frequently misinterpreted. Looking ahead, the central bank committed to increasing transparency by reporting foreign exchange operation data to the International Monetary Fund starting in 2027.
Entities
European Union · International Monetary Fund · Maros Šefčovič · People's Bank of China · Wang Wentao
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Attributing structural economic issues and declining competitiveness to other countries' exchange rates is an evasion of responsibility. epaper.xkb.com.cn · www.etnet.com.hk
- [○ 1 SOURCE] China will begin reporting foreign exchange operation data to the IMF in 2027.
- [○ 1 SOURCE] French and German leaders have suggested the renminbi is undervalued by 25% to 30%.
- [○ 1 SOURCE] The IMF estimated China's real effective exchange rate was undervalued by 12% to 20% by 2025.
- [● 3 SOURCES] China does not use currency depreciation to gain trade advantages. epaper.xkb.com.cn · www.etnet.com.hk
- [○ 1 SOURCE] China maintains a managed floating exchange rate system based on market supply and demand and a basket of currencies. epaper.xkb.com.cn