The PBOC said China has no need and no intention to devalue the RMB to secure a
trade competitiveness edge. It noted a structural decline in Chinese trade’s
sensitivity to exchange-rate moves and reiterated China has not pursued
competitive devaluations during past external shocks. During the 1990s Asian
financial crisis and the 2008 global financial crisis the RMB was kept broadly
stable. Faced with recent trade tensions and sharp Fed tightening that pressured
non-dollar currencies, the central bank said it has used macroprudential
measures to prevent an overshoot in RMB depreciation.
