The Chinese Communist Party's People's Bank of China issued the document "Policy Stance on the RMB Exchange Rate," reiterating that China has neither the need nor the intention to gain a trade advantage through exchange rate depreciation, and will never engage in competitive devaluation.
According to a report by The New York Times on October 6, China's value-added tax refunds for exporters reached $318.2 billion last year, equivalent to 1.5% of GDP; the renminbi depreciated by more than 14% from the start of 2022 after inflation adjustment, and the export model has intensified friction with trading partners.
China's central bank announced the issuance of 60 billion RMB in central bank bills in Hong Kong on September 23, aiming to drain offshore RMB liquidity to maintain the RMB exchange rate.
According to Reuters, the State Administration of Foreign Exchange (SAFE) has been intensively instructing banks to raise the foreign exchange hedging ratio for enterprises, lifting the national average to around 35.3 percent and coastal export-heavy provinces to above 40 percent.
The IMF released its latest assessment, concluding that the renminbi is undervalued by 21.3 percent.
The Senate voted on a bill to reform currency oversight, which aims to punish China for manipulating the RMB. McConnell voted against it.
On January 1, 1994, the official and market exchange rates of the Renminbi were merged, forming a unified exchange rate.
In late 1993, China determined the plan to unify the RMB exchange rate, merging the official and market rates. The relevant reforms were officially implemented the following year.