The International Monetary Fund has declared that the exchange rate of the Renminbi is fairly valued.
The IMF held a press conference for the completion of the 2015 Article IV Consultation to China in Beijing.
The organization's First Deputy Managing Director, David Lipton said the exchange rate of Renminbi is no longer undervalued after the past 12 months.
"While the undervaluation of Renminbi was a major factor causing the large imbalance in the past, our assessment now is that the substantial real effective appreciation over the past year has brought the exchange rate to a level that is no longer undervalued."
He also highlights the need to make rapid progress towards greater exchange rate flexibility as China is integrating rapidly to the global financial market.
"Greater flexibility, with intervention limited to avoiding disorderly market conditions or excess volatility, will also be key to prevent the exchange rate from moving away from equilibrium in the future. We believe that China should aim to achieve an effectively floating exchange rate within 2-3 years."
He added that the Renminbi has become wildly used in neighboring countries and regions, which is good for China's businesses and people.
IMF also projects that China's economy will grow at 6.8 percent this year, consistent with the Chinese government's growth target of about 7 percent.
.gif){kind=small}
.jpg){kind=small}
