China’s nominal exchange rate held steady while its real trade-weighted rate fell 14%
China gained price competitiveness through domestic deflation, not a broad devaluation of the renminbi.
With March 2022 set to 100, the BIS real effective exchange-rate index fell to about 80 in 2025 before recovering to 86.0, while the nominal index ended at 100.5 and the CFETS index at 98.4. China’s CPI inflation dipped below zero during 2023–2025 as advanced-economy inflation peaked near 7.5% and emerging- and developing-economy inflation peaked near 18%.
