On October 8, the People's Bank of China issued its policy position on the RMB exchange rate. The position is clear. 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 play a decisive role in the formation of exchange rates. The People's Bank of China has made it clear in its policy position on the RMB exchange rate that the People's Bank of China does not set a target exchange rate level, does not interfere with long-term exchange rate trends, and maintains exchange rate flexibility and two-way fluctuation. After 2017, the People's Bank of China withdrew from normalized foreign exchange intervention. The People's Bank of China focuses on preventing large short-term fluctuations in exchange rates, especially from affecting financial stability by rapidly depreciating in the short term. Under specific scenarios, such as the outbreak of the epidemic and major external shocks such as the April 2025 tariff war, the People's Bank of China uses macroprudential management tools to adjust and guide expectations, and even directly intervene in foreign exchange under extreme scenarios to prevent destructive short-term overadjustments in the exchange rate. These measures are in line with international rules and practices. The People's Bank of China stated in its policy position on the RMB exchange rate that since the 2005 foreign exchange reform, the RMB exchange rate has fluctuated in both directions and has remained strong overall among major international currencies. The People's Bank of China stated in its policy position on the RMB exchange rate that China has no need or intention to gain competitive advantage in trade through depreciation of the exchange rate. The People's Bank of China's position on the RMB exchange rate policy is also clear. China will firmly implement the strategic direction and key measures set out in the “15th Five-Year Plan”, insist on promoting the transformation of the mode of economic growth, expand domestic demand and a high level of opening-up to the outside world, and contribute to a new round of global economic dynamic balance. Strengthen international economic and financial cooperation, actively participate in and promote the reform and improvement of global financial governance, and maintain global economic and financial stability.

On October 8, the People's Bank of China issued its policy position on the RMB exchange rate. The position is clear. 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 play a decisive role in the formation of exchange rates. The People's Bank of China has made it clear in its policy position on the RMB exchange rate that the People's Bank of China does not set a target exchange rate level, does not interfere with long-term exchange rate trends, and maintains exchange rate flexibility and two-way fluctuation. After 2017, the People's Bank of China withdrew from normalized foreign exchange intervention. The People's Bank of China focuses on preventing large short-term fluctuations in exchange rates, especially from affecting financial stability by rapidly depreciating in the short term. Under specific scenarios, such as the outbreak of the epidemic and major external shocks such as the April 2025 tariff war, the People's Bank of China uses macroprudential management tools to adjust and guide expectations, and even directly intervene in foreign exchange under extreme scenarios to prevent destructive short-term overadjustments in the exchange rate. These measures are in line with international rules and practices. The People's Bank of China stated in its policy position on the RMB exchange rate that since the 2005 foreign exchange reform, the RMB exchange rate has fluctuated in both directions and has remained strong overall among major international currencies. The People's Bank of China stated in its policy position on the RMB exchange rate that China has no need or intention to gain competitive advantage in trade through depreciation of the exchange rate. The People's Bank of China's position on the RMB exchange rate policy is also clear. China will firmly implement the strategic direction and key measures set out in the “15th Five-Year Plan”, insist on promoting the transformation of the mode of economic growth, expand domestic demand and a high level of opening-up to the outside world, and contribute to a new round of global economic dynamic balance. Strengthen international economic and financial cooperation, actively participate in and promote the reform and improvement of global financial governance, and maintain global economic and financial stability.