China says yuan devaluation not needed to boost trade
People’s Bank of China (PBC) Pan Gongsheng attends a press conference on the economy during the Fourth Session of the National People’s Congress (NPC) in Beijing, China, 06 March 2026. China holds two major annual political meetings, the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), which run alongside each other and together are known as the ‘Lianghui’ or ‘Two Sessions’. Photo by WU HAO / EPA
March 6 (Asia Today) — China’s central bank governor said Thursday that Beijing has no intention of weakening the yuan to improve trade competitiveness, emphasizing confidence in the stability of the country’s currency.
Pan Gongsheng, governor of the People’s Bank of China, made the remarks during an economic press conference at the annual session of China’s National People’s Congress in Beijing.
Pan said recent movements in the yuan against the U.S. dollar were influenced by several factors, including China’s economic recovery, fluctuations in the U.S. dollar index and seasonal increases in corporate foreign exchange settlements.
“The current exchange rate of the yuan against the dollar remains within the mid-range seen in recent years,” Pan said. “China neither needs nor intends to gain trade competitiveness through currency depreciation.”
He added that the central bank plans to maintain an “appropriately accommodative” monetary policy in 2026, including the flexible use of tools such as reserve requirement ratio reductions and interest rate adjustments.
Demand for yuan-denominated financial instruments has continued to grow. The issuance of yuan-denominated bonds over the past 14 months reached about 1.365 trillion yuan ($200 billion), the highest level on record, according to financial market data.
Analysts say the increase reflects relatively low interest rates in China and the gradual expansion of yuan settlement in international transactions.
Offshore yuan bonds known as dim sum bonds have grown particularly quickly. About 103 billion yuan ($15 billion) worth have been issued so far this year, roughly double the amount recorded during the same period last year.
So-called panda bonds, which are yuan-denominated bonds issued in China by foreign companies, have also expanded, with 51.4 billion yuan ($7.5 billion) issued this year.
Overseas yuan lending reached 425 billion yuan ($62 billion) in 2025, the highest level on record.
Despite the growing use of the currency, analysts say the yuan still faces obstacles before it can rival the U.S. dollar as a major global reserve currency.
China’s leadership, including President Xi Jinping, has promoted the internationalization of the yuan as part of a broader effort to strengthen its role in global finance.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260306010001817
