The PBOC said China operates a managed floating exchange-rate regime for the
renminbi based on market supply and demand and referencing a basket of
currencies, with the market playing the decisive role in exchange-rate
formation. The central bank noted the renminbi has exhibited two-way floating
for more than 20 years and, since 2010, has experienced multiple appreciation
and depreciation cycles with stronger two-way fluctuations and greater
flexibility. The PBOC reiterated China will not seek trade advantage through
currency depreciation and will not engage in competitive devaluation; trade
growth reflects rising industrial competitiveness.
