International Monetary Fund Managing Director Dominique Strauss-Kahn, speaking at a conference of the European Parliament on Wednesday, said the IMF believes the renminbi is "very much undervalued," Dow Jones reported. He said that in economies with persistent account surpluses, specifically China, Germany and oil-producing nations, domestic demand must increase and that the "massive" buildup of reserves by some countries has put the international monetary system under strain. He also said that the global economic recovery is stronger than some anticipated, including the IMF, which is now forecasting global growth of 4% this year.
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