The PBOC said the exchange rate and the current account do not have a simple linear relationship. Exchange rates are relative prices influenced by economic growth, monetary policy, financial markets, geopolitical developments and sudden shocks. Analy

2026-10-08

The PBOC said the exchange rate and the current account do not have a simple linear relationship. Exchange rates are relative prices influenced by economic growth, monetary policy, financial markets, geopolitical developments and sudden shocks. Analysis of exchange-rate moves should cover services as well as goods trade, the financial account as well as the current account, and both economic fundamentals and market expectations.