The People's Bank of China stated it has no intention of seeking trade competitive advantage through currency depreciation and does not engage in competitive devaluation. The central bank clarified that China operates a managed floating exchange rate regime based on market supply and demand, having withdrawn from routine foreign exchange intervention in 2017. Macroprudential tools are deployed only to prevent short-term overshooting during major external shocks, such as the pandemic and the April 2025 tariff war. The RMB has appreciated 23% against the US dollar since the 2005 exchange rate reform, with the nominal effective exchange rate rising over 50%. Year-to-date appreciation against the dollar stands at approximately 9%. The PBOC also rejected IMF External Balance Assessment conclusions as a basis for claiming RMB undervaluation, calling such use a distortion and emphasizing that resolving global imbalances requires joint action from both deficit and surplus nations.