(ECNS) -- China's central bank on Thursday reiterated its commitment to allowing market forces to play a decisive role in determining the RMB exchange rate, according to a policy statement released by the People's Bank of China (PBOC).
China adopts a managed floating exchange rate regime based on market supply and demand, with reference to a basket of currencies, the PBOC said.
Since 2010, the RMB exchange rate has undergone multiple cycles of appreciation and depreciation, with two-way fluctuations becoming more pronounced and the exchange rate becoming more flexible.
The PBOC said China's trade growth was driven by improvements in the international competitiveness of its industries. China has no need or intention to gain a competitive advantage through currency depreciation, nor has it ever resorted to competitive devaluation, the central bank said.
Addressing global economic imbalances requires joint efforts by all parties, the PBOC said. "Attributing one's decline in industrial competitiveness, weakened fiscal discipline, and complicated structural issues simply to others' exchange rates is nothing but shifting the responsibility for adjustment onto others and dodging accountability," it said.
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