IMF Says Chinese Currency Substantially Undervalued |
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March 1, 2010
The U.S. dollar is still somewhat overvalued while the Chinese renminbi is substantially undervalued, the International Monetary Fund said on Monday in an assessment of Group of 20 major economies.
The U.S. dollar is still somewhat overvalued while the Chinese renminbi is substantially undervalued, the International Monetary Fund said on Monday in an assessment of Group of 20 major economies.
"The Chinese renminbi has depreciated in real effective terms in tandem with the U.S. dollar and is assessed to be substantially undervalued from a medium-term perspective," the IMF said in a note to a G20 ministers meeting in Seoul, South Korea, at the weekend but only released on Monday.
The IMF has for some time argued that the Chinese exchange rate is too low and is significantly undervalued against the U.S. dollar.
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