IMF: Yuan ‘No Longer Undervalued’ Even After Drop This Week
2015-08-15 00:00:00.15 GMT
By Andrew Mayeda
(Bloomberg) -- A nearly 3% drop in China’s currency this
week hasn’t changed the IMF’s view that then yuan is “no longer
undervalued,” a fund official said Friday, noting an
substantial appreciation during the past year.
* “What has happened in the last few days, this does not
change our assessment that the RMB is no longer
undervalued”: IMF mission chief for China Markus Rodlauer
* Rodlauer, speaking to reporters in Washington on conference
call, says decision to link currency more closely to markets
is “welcome step,” may bring yuan nearer to being freely
floating
* IMF releases annual assessment of China’s economy, report
concluded on July 22, prior to yuan devaluation this week
* IMF says China should, within 2-3 years, put in place an
effectively floating exchange rate before full
liberalization of the country’s capital account
* IMF forecasts Chinese real GDP growth of 6.8% in 2015, 6.3%
in 2016 and 6% in 2017
* IMF says dampening effect of Chinese stock market volatility
on consumer spending should limited, urges authorities to
“curtail market intervention” in equities
* IMF executive board say China’s reliance on credit-financed
investment has created large vulnerabilities and these
should be reined-in as a “priority”
* China should avoid a sharp contraction in local government
spending this year and a gradual consolidation should begin
in 2016: IMF executive board
* “Monetary policy should take a wait-and-see approach,
especially as significant easing would risk exacerbating the
credit and investment vulnerabilities”: executive board
For Related News and Information:
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To contact the reporter on this story:
Andrew Mayeda in Washington at +1-202-624-1947 or
amayeda@bloomberg.net
To contact the editors responsible for this story:
Christopher Wellisz at +1-202-624-1862 or
cwellisz@bloomberg.net
Alister Bull
2015-08-15 00:00:00.15 GMT
By Andrew Mayeda
(Bloomberg) -- A nearly 3% drop in China’s currency this
week hasn’t changed the IMF’s view that then yuan is “no longer
undervalued,” a fund official said Friday, noting an
substantial appreciation during the past year.
* “What has happened in the last few days, this does not
change our assessment that the RMB is no longer
undervalued”: IMF mission chief for China Markus Rodlauer
* Rodlauer, speaking to reporters in Washington on conference
call, says decision to link currency more closely to markets
is “welcome step,” may bring yuan nearer to being freely
floating
* IMF releases annual assessment of China’s economy, report
concluded on July 22, prior to yuan devaluation this week
* IMF says China should, within 2-3 years, put in place an
effectively floating exchange rate before full
liberalization of the country’s capital account
* IMF forecasts Chinese real GDP growth of 6.8% in 2015, 6.3%
in 2016 and 6% in 2017
* IMF says dampening effect of Chinese stock market volatility
on consumer spending should limited, urges authorities to
“curtail market intervention” in equities
* IMF executive board say China’s reliance on credit-financed
investment has created large vulnerabilities and these
should be reined-in as a “priority”
* China should avoid a sharp contraction in local government
spending this year and a gradual consolidation should begin
in 2016: IMF executive board
* “Monetary policy should take a wait-and-see approach,
especially as significant easing would risk exacerbating the
credit and investment vulnerabilities”: executive board
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Andrew Mayeda in Washington at +1-202-624-1947 or
amayeda@bloomberg.net
To contact the editors responsible for this story:
Christopher Wellisz at +1-202-624-1862 or
cwellisz@bloomberg.net
Alister Bull