The People's Bank of China said on Thursday that market supply and demand decide the yuan under a managed float, and that China does not seek advantage through devaluation.
The People's Bank of China said on Thursday that the yuan is set under a managed floating regime based on market supply and demand, with reference to a basket of currencies. Market forces play a decisive role, the central bank said, in a statement carried by CGTN, a state broadcaster.
The bank said the rate has floated in both directions for two decades and has gone through several cycles of appreciation and depreciation since 2010, with more two-way movement and greater flexibility.
It said China's trade growth comes from industrial competitiveness, not from the currency. China has no need or intent to gain an advantage through devaluation, and has not used competitive devaluation, the statement said.
The comments come as discussion of the yuan has increased, CGTN reported. The statement did not announce a new band, a rate target or an intervention.
CGTN is state-affiliated. The account here is the bank's published position, not an independent market forecast.