The International Monetary Fund has said that the renminbi is "substantially undervalued," Reuters reported. In a note to the G20 ministers meeting held in Seoul over the weekend, the IMF said that "the Chinese renminbi has depreciated in real effective terms in tandem with the U.S. dollar and is assessed to be substantially undervalued from a medium-term perspective." Separately, Yi Gang, the head of China’s State Administration of Foreign Exchange (SAFE), said that growing currency inflows driven by China’s relatively high interest rates were creating pressure for the renminbi to appreciate. "The task of promoting balance in our international payments is getting even tougher," Yi said.
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