IMF official says China's yuan no longer undervalued

Staff Writer
Columbus CEO

BEIJING (AP) — An official of the International Monetary Fund says it believes China's currency is no longer undervalued — a stance that might help Beijing in its wrangling with Washington over exchange rate controls.

The IMF's first deputy managing director, David Lipton, also said Tuesday that Beijing should work toward having a floating exchange rate in two to three years.

Lipton spoke after meeting Chinese officials to discuss economic and financial policy.

The United States and some other governments have complained for years that China suppresses the value of its currency, the yuan, giving its exporters an unfair price advantage and hurting their foreign competitors.

Referring to the yuan, Lipton said that after recent changes in global exchange rates, "We believe that it is no longer undervalued."