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Chinese yuan liberalised but undervalued: IMF

Chinese yuan liberalised but undervalued: IMF article image
The International Monetary Fund (IMF) has congratulated China on its recent measures to liberalise their currency, opening it to market value. The IMF issued a statement yesterday to welcome "the important progress made in the past few years in increasing the market's role in determining the exchange rate, as well as the consequent substantial real appreciation that has been achieved since the exchange rate reform in 2005". However, it acknowledges that in many circles, the yuan is considered undervalued, giving China a trade advantage. The USA and several European countries have encouraged China to allow the yuan to appreciate, accusing the Chinese government of keeping it low to protect its export sector.

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