IMF says RMB not 'substantially undervalued'
( 2003-11-19 10:23) (Xinhua)
The International Monetary Fund(IMF) said Tuesday that China's currency does
not appear "substantially undervalued."
In a report following annual consultations with China, the IMF said, "Most
directors noted that there is no clear evidence that the Renminbi is
substantially undervalued at this juncture."
"Directors also felt that a currency revaluation would not by itself have a
major impact on global current account imbalances --particularly given China's
relatively small share in world trade," the report said.
The IMF report also said that a flexible exchange rate for the Chinese
currency would be in China's interests.
Some US lawmakers have asserted that China is manipulating its currency to
gain a competitive edge in trade with the United States.
However, the US Treasury Department said at the end of last month that China
is not violating an American law against currency manipulation to gain unfair
trade advantages.
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