IMF report to declare RMB significantly undervalued

The International Monetary Fund’s board announced that it will discuss a report on China’s economy on July 8, Reuters reported. The report, a yearly review the IMF conducts with all of its member countries, has been postponed in China since 2007 after Beijing objected to changes in the IMF’s currency rules. China saw the changes as an attempt by the United States to persuade the IMF in its campaign for a stronger renminbi. Earlier this week, the IMF softened its guidelines on how it assesses the exchange rate policies of its member countries, a move seen as an olive branch toward Beijing. The report will include the IMF’s assessment of China’s exchange rate policy. A source who has seen a draft of the report said it calls the renminbi "significantly undervalued."