PBOC deputy governor Lu Lei said China has no need and no intention to devalue the yuan to secure trade competitiveness. He said upgrading of export structures, stronger corporate pricing power and improved FX risk management have sharply reduced China’s trade sensitivity to the exchange rate. Foreign-trade firms are using more FX hedges and the RMB’s share of trade settlement is rising, further lowering trade’s exchange-rate sensitivity.

2026-09-10

PBOC deputy governor Lu Lei said China has no need and no intention to devalue the yuan to secure trade competitiveness. He said upgrading of export structures, stronger corporate pricing power and improved FX risk management have sharply reduced China’s trade sensitivity to the exchange rate. Foreign-trade firms are using more FX hedges and the RMB’s share of trade settlement is rising, further lowering trade’s exchange-rate sensitivity.