IMF

The International Monetary Fund (IMF), said China’s yuan is undervalued (in value), although the central bank of China has promised to create a more flexible exchange rate.

“We continue to believe, because we have a common position on this subject, that the renminbi is” undervalued, “said Mr. Strauss-Kahn told reporters.

The Chinese currency against the dollar PEG 2005 and earlier this month promises to be the liberalization of trade against the dollar despite the spectacular maneuvers aside. U.S. lawmakers have threatened to retaliate against China, accusing China of deliberately keeping the yuan weak to exports of goods and products to encourage cheaper.

But Strauss-Kahn said she believed the majority of its response to China’s national strategy for future growth in domestic demand rather than export promotion. “Even a strong revaluation of the yuan will not completely solve the imbalances – far from it,” he said.

“Certainly, the revaluation of the renminbi is made in the right direction and we are always busy with that, but there are many other sources of imbalance that can not be solved by the evolution of money,” he said.

Strauss-Kahn said that the yuan is still too early to reserve a portion of the currency used by the IMF, known as Special Drawing Rights (SDRs) to be. “I think it would be difficult to enter the renminbi before the reality on the market price or the floating currencies in some way,” he said.

“But sooner the better because time had expired there are more reasons in addition to other currencies of the SDR,” he said to take. (*)

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