The central bank released its stance on the RMB exchange rate policy: China is actively promoting a transformation of its economic growth model.

智通财经2026/10/09 01:06

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On October 8, the People’s Bank of China released its policy stance on the RMB exchange rate. The stance clarifies that China implements a managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, and insists on allowing the market to play a decisive role in the formation of the exchange rate. The central bank made it clear that it does not preset a target exchange rate level, will not intervene in long-term exchange rate trends, and will maintain exchange rate flexibility with two-way fluctuations. Since 2017, the People’s Bank of China has exited regular foreign exchange intervention. The central bank will focus on preventing significant short-term exchange rate volatility, especially sharp and rapid depreciation, from impacting financial stability. In specific scenarios such as sudden pandemics or major external shocks like the tariff war in April 2025, macroprudential tools will be used for adjustments and expectations management, and in extreme cases, direct foreign exchange intervention may be conducted to prevent destructive short-term overshooting of the exchange rate. These measures comply with international rules and practices. The central bank stated that since the 2005 exchange rate reform, the RMB exchange rate has fluctuated in both directions and has generally remained strong among major international currencies. The People’s Bank of China also explicitly expressed that China neither needs nor intends to gain a trade competitive advantage through exchange rate depreciation. Furthermore, the central bank reaffirmed its commitment to the strategic direction and key initiatives set out in the “15th Five-Year Plan,” to promote a transformation in the mode of economic growth, expand domestic demand and high-level openness, and contribute to a new round of global economic rebalancing. China will also strengthen international economic and financial cooperation, actively participate in and advance global financial governance reforms, and help safeguard global economic and financial stability. (CCTV)

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On October 8, the People's Bank of China issued a policy statement on the RMB exchange rate. The statement clarified that China implements a managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, and insists that the market plays a decisive role in the formation of the exchange rate. In its policy position regarding the RMB exchange rate, the People's Bank of China made it clear that it does not set a predetermined exchange rate target level, does not intervene in the long-term trend of the exchange rate, and maintains exchange rate flexibility and two-way fluctuation. After 2017, the People's Bank of China withdrew from routine foreign exchange intervention. The People's Bank of China focuses on preventing short-term sharp fluctuations in the exchange rate, especially rapid short-term depreciation that could affect financial stability. In specific scenarios, such as sudden outbreaks of the pandemic or major external shocks like the tariff war in April 2025, the People's Bank of China uses macroprudential management tools for adjustment and guidance of expectations, and may even directly intervene in the foreign exchange market in extreme cases to prevent destructive overshooting of the exchange rate in the short term. These measures are in line with international rules and practices. In its policy statement on the RMB exchange rate, the People's Bank of China said that since the 2005 exchange rate reform, the RMB exchange rate has experienced two-way fluctuation and has generally remained strong among major international currencies. The PBOC also stated that China neither needs nor intends to obtain a trade competitive advantage by depreciating the exchange rate. The People's Bank of China also stressed in its RMB exchange rate policy position that China is firmly implementing the strategic direction and key measures set by the "15th Five-Year Plan," adhering to the transformation of the economic growth model, expanding domestic demand, and pursuing high-level opening up to the outside world, thereby contributing to a new round of dynamic global economic balance. China will strengthen international economic and financial cooperation, actively participate in and promote the reform and improvement of global financial governance, and safeguard global economic and financial stability. (CCTV)

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The central bank released its stance on the RMB exchange rate policy: China is actively promoting a transformation of its economic growth model.

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