The IMF called on China to give up control of the yuan and two – three years to move to a floating rate. This may lead to the devaluation of the Chinese currency, the head of the International Monetary Fund (IMF) in China Markus Rodlauer.
«The IMF is confident that China can and must achieve effective floating exchange rate within two – three years” – said Rodlauer.
The Chinese national currency, despite the significant depreciation in the last week, was still overvalued against the dollar, said Rodlauer. The economist added that the Chinese government should continue to move towards the reform of the foreign exchange market to eventually come to a floating rate. This means that the exchange rate of RMB against the US dollar will be established only in accordance with the movements of the currency market.
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