The bank maintains a managed floating exchange rate based on market supply and demand, noting the renminbi has seen two way floating for over 20 years and multiple cycles of movement since 2010. While market forces remain decisive in rate formation, the PBOC may intervene in extreme cases, such as the tariff war in April 2025, to prevent destructive short term overshooting. The statement also attacks the use of IMF assessments by the European Union to justify demands for renminbi appreciation.
Wednesday, October 21, 2026
Story
Yuan Hits Four Year High Following PBOC Undervaluation Rejection
Global Markets12 days ago
The People's Bank of China dismissed the tendency to blame the renminbi for global trade imbalances as a "de facto political maneuver" in a formal policy defense. This stance helped drive the currency to a 4 year high against a basket of its trading partners' currencies, ending claims that the central bank was actively suppressing the currency's value. The PBOC asserted that it has never employed competitive devaluation to gain a trade edge and currently has no need or intention of weakening the currency for such purposes.
Looking for more context or analysis?
Tilt chat provides reliable, tailored insights, alerts, and automations.