IMF stands by China's Yuan despite US call to act on FX rigging


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IMF stands by China's Yuan despite US call to act on FX rigging

On Friday, the 10th of August 2019, after US Treasury Secretary, Steven Mnuchin calls for an official help from International Monetary Fund to address China’s FX manipulation issue after the central Asian country’s Central Bank let Chinese Yuan fall below 7 per US dollar, International Monetary Fund, a sister organization of the World Bank, stood by the People’s Bank of China (China’s Central Bank) adding that the value of Chinese Yuan has been well in alignment with the economic fundamentals.

In point of fact, Darkening outlook of a US-China trade-haggle further, US Treasury’s Mnuchin asked for IMF’s (International Monetary Fund) aid to fix an unfair trade advantage through FX rigging what Beijing had been exercising for years to offset impacts of tariffs last week, however IMF stood beside China as beforementioned and cautions that the Chinese economy might require further stimulus if the trade war worsened.

Nonetheless, IMF’s view on China’s currency manipulation would likely to be opposed by some of its largest stakeholders including United States, which had labelled China as a currency manipulator for the first time since 1994 this week.

Meanwhile, as a response to a US appeal to address much-debated currency manipulation by China, the largest foreign currency holder across the world with more than $3 trillion worth of foreign reserves, an IMF official had been quoted saying on Friday (August 10th) that followed by an assessment of China’s economic policies, IMF officials had agreed that “China’s offshore Yuan exchange rate was not significantly over-valued or under-valued”.