A new report from the International Monetary Fund (IMF) gainsays recent claims by the United States that that China is engaging in manipulation of its currency.
The report released on 9 August in Washington said that the renminbi is “broadly in line with the level consistent with medium-term fundamentals and desirable policies,” and that China itself had engaged in “little FX intervention.”
The IMF compiled the report based on its latest Article IV consultation with China that concluded on 31 July.
According to the report China’s current account surplus fell by around 1 percentage point to 0.4% of GDP in 2018, and that it is expected to hold steady at 0.5% of GDP in 2019.
The release of the report arrived just four days following the US Treasury’s labelling of China as a currency manipulator on Monday of the same week, following the renminbi’s decline to more than 7 to the dollar for the first time in a decade.
The Chinese central bank responded to the US Treasury’s declaration by accusing Washington of “ruining the international financial order.”