# Quantifying China’s substantial RMB undervaluation | Brookings

> A Brookings analysis by Robin Brooks estimates that China's renminbi is substantially undervalued, using the IMF-style macro-balance approach. The piece argues that China's large current account surplus has persisted and that standard valuation models tend to treat such misalignment as normal.

- Date: 2025-03-28 · published 2025-03-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/25815-quantifying-china-s-substantial-rmb-undervaluation-brookings
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A persistently undervalued yuan supports Chinese exports and can prompt policy pressure for currency appreciation, which could change the cost of imported feed inputs over time, though this is a long-run analytical view rather than a near-term market driver.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-06-29 | [China's yuan firms as Beijing eases quarantine rules \| Financial Post](https://feedsoft.ai/events/41167-china-s-yuan-firms-as-beijing-eases-quarantine-rules-financial-post.md) | 0.0% | +0.7% |
| USDCNY | 2019-08-05 | [China's central bank denies devaluation is to counter tariffs](https://feedsoft.ai/events/5375-china-s-central-bank-denies-devaluation-is-to-counter-tariffs.md) | +1.8% | +3.1% |
| USDCNY | 2023-06-27 | [Yuan's Plunge Against Rival Dollar Underscores China Stagnation Fears - Markets Insider](https://feedsoft.ai/events/10494-yuan-s-plunge-against-rival-dollar-underscores-china-stagnation-fears-markets.md) | +0.0% | -1.4% |
| USDCNY | 2016-06-24 | [China Center Chart Dive: RMB devaluation — a guided market correction](https://feedsoft.ai/events/10882-china-center-chart-dive-rmb-devaluation-a-guided-market-correction.md) | +1.1% | +1.6% |
| USDCNY | 2018-06-28 | [GlobalSource Partners \| Can China sustain RMB depreciation?](https://feedsoft.ai/events/64733-globalsource-partners-can-china-sustain-rmb-depreciation.md) | +0.5% | +2.8% |

## Sources

- brookings.edu: https://www.brookings.edu/articles/quantifying-chinas-substantial-rmb-undervaluation/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.