IMF close to declaring RMB fairly valued

The International Monetary Fund is nearing an official reevaluation of China’s yuan as fairly valued after a decade in which it has been allowed to appreciate by more than 30% against a basket of currencies, The Wall Street Journal reported. The country’s trade surplus has declined to 2.5% of GDP, and currency interventions are now comparatively rare, outside experts and IMF economists said. “By both measures, it has become untenable to regard the renminbi as significantly, or even moderately, undervalued,” said Eswar Prasad, a Cornell University economist and former China official at the IMF.