Why did China’s central bank reject claims that it weakens the yuan to boost exports?

The People’s Bank of China said China has never engaged in competitive currency devaluation and has no need or intention to use yuan depreciation for trade competitiveness. It said blaming other countries’ exchange rates for domestic industrial and fiscal problems avoids responsibility for necessary adjustments.

How much has the yuan changed against the US dollar in 2026?

The yuan has strengthened about 4 percent against the US dollar so far this year. This occurred despite a widening yield gap between US and Chinese government bonds, which could otherwise weigh on the Chinese currency.

What is China changing about its foreign-exchange reporting to the IMF?

China will provide additional foreign-exchange-related data to the International Monetary Fund starting in 2027. The central bank did not specify in the statement which additional data would be reported.

China has no need or intention to weaken yuan for trade edge, central bank says

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Summary

China’s central bank said in Beijing that the country has no need or intention to weaken the yuan for a trade advantage. The People’s Bank of China rejected claims that China keeps its currency undervalued, saying market forces play a decisive role in exchange-rate formation. The yuan has strengthened about 4 percent against the U.S. dollar this year as the EU seeks to address its trade imbalance with China.

Key Facts

The EU’s trade imbalance with China reached €360.6 billion in 2025, up 15 percent from the previous year.
The People’s Bank of China said it does not set exchange-rate targets or intervene in long-term exchange-rate trends.
European Central Bank President Christine Lagarde called in June for discussion of Chinese currency undervaluation as a contributor to global economic imbalances.
China will begin reporting additional foreign-exchange data to the International Monetary Fund in 2027.

By Reuters

Published Oct 8, 2026 8:40 pm KST

One hundred China yuan bank notes with the image of former communist party leader Mao Zedong, are being counted in Beijing, in December 2006. AFP-Yonhap

BEIJING — China has no need or intention to use yuan depreciation for a trade competitive advantage and has never engaged in competitive currency devaluation, the central bank said, rejecting criticisms from western trading partners including the EU.

The central bank remarks push back against claims that China keeps its currency undervalued to make its exports cheaper and imported goods pricier, and were issued as the EU's trade chief Maros Sefcovic was in Beijing to discuss narrowing the bloc's trade deficit with China.

China's yuan has strengthened about 4 percent against the U.S. dollar so far this year, defying the drag from a widening yield gap between US and Chinese government bonds.

In a June speech, European Central Bank President Christine Lagarde urged global leaders to discuss undervaluation of the Chinese currency as a facet of the imbalances endangering the global economy. The bloc is concerned about its trade imbalance with China, which reached €360.6 billion in 2025, according to EU data, up 15 percent from the previous year.

China lets the market play a decisive role in exchange rate formation, the People's Bank of China (PBOC) said in a statement, adding that it does not preset exchange rate target levels or intervene in long-term exchange rate trends.

"Attributing a decline in domestic industrial competitiveness, the weakening of fiscal and financial discipline and complex structural problems simply to the exchange rates of other nations amounts to evading and shirking one's own responsibility for making necessary adjustments," the PBOC said.

China will report additional foreign exchange-related data to the International Monetary Fund starting from 2027, the central bank said.

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