Already for a long time, the growth in the amount of Chinese debt and volatility on financial markets has increased depreciation pressures on the yuan's exchange rate. At the end of last year, Chinese officials significantly tightened rules on buying foreign currency and capital controls to stem forex outflows and alleviate some of the more immediate depreciation pressure on the yuan. The restrictions have helped the People's Bank of China keep the yuan's exchange rate extremely stable in the first quarter around 6.9 yuan to the US dollar.
The current situation gave the US no ground for portraying China as a currency manipulator in the US Treasury Department's report published in April.
Yuan CFETS, REER and USD exchange rate