Because China is such a strong export economy that generates a significant amount of foreign currency it has traditionally remained very active in manipulating the value of its own currency. Because the dollars, yen, euro, and pounds generated overseas have to be converted to China’s yuan when repatriated the Chinese currency had a tendency to strengthen steadily. That is bad for China’s export economy since a stronger yuan makes China’s exports less competitive overseas. Two ways China manages its money supply is by controlling forex rates and printing currency. The PBOC can also control the money supply by changing the reserve ratio and the discount rate.