The International Monetary Fund (IMF) considers the US-denominated exchange rate of the Chinese yuan as appropriate. The stock broadly agrees with economic fundamentals, said IMF Director for China, James Daniel, yesterday evening (local time) in Washington. Last year, the yuan was „neither significantly overvalued nor undervalued,“ he said.
This contradicted the attitude of the largest IMF US shareholder, who accused China of currency manipulation following the recent decline in the yuan. US Treasury Secretary Steve Mnuchin sees unfair trade practices in the current devaluation of the yuan and wants to counteract them with the help of the IMF.
IMF Director Daniel did not want to comment. He said in a conference call with journalists only that the IMF and the US Treasury Department were constantly discussing a number of issues. The IMF said in a report that further tightening of the US-China trade dispute could jeopardize the economic and financial stability of the People’s Republic and necessitate government support to the economy.
