PBOC says it does not plan to devalue yuan for trade purposes
The central bank repeats a pledge on yuan stability as trade friction with the EU and UK continues on separate tracks
Published
The People's Bank of China said on Thursday that it does not plan to devalue the yuan for trade purposes. The statement repeats language the bank has used through the year, pairing warnings against herd behavior in currency markets with reassurances on yuan stability.
The pledge follows an actual easing step rather than just talk. On September 29 the central bank cut its prime rate and expanded relending facilities, moves that went beyond the kind of rhetoric in Thursday's statement.
Trade tension between China and Europe continues on a separate track. The EU has imposed temporary limits on Chinese hybrid car imports, stopping short of tariff measures while it weighs a market-access tool aimed at Chinese EV makers. Germany and France have proposed a trade tool of their own to curb China's access to the EU market, after Beijing warned it would retaliate against EU trade measures. Britain has also moved on tariffs covering Chinese EVs.
A no-devaluation pledge does not resolve any of that friction. It reads as routine currency messaging rather than a new signal about Beijing's broader trade or growth stance.