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The acting head of the International Monetary Fund says the Chinese currency needs to rise. He says it would be good for China's economy by boosting domestic sales.
China's central bank needs to allow the value of the Chinese Yuan to rise, says the International Monetary Fund's acting chief, John Lipsky.
Speaking at a press briefing in Beijing on Thursday, he said this would help shift China's economy away from its reliance on exports, towards stronger domestic consumption.
Lipsky's comments add weight to what the U.S. government has been saying for years: That the Yuan—or RMB—is under-valued. And that it's been giving Chinese exports an unfair advantage in the global marketplace.
Lipsky also said that—under certain conditions—the Yuan could eventually be included in the IMF's Special Drawing Rights. That's an international reserve asset that's valued using the most important international currencies.
[John Lipsky, IMF acting chief]:
"It is certainly agreed that over time the RMB is likely to become a candidate for inclusion in the SDR basket—but it needs to become more freely usable and more widely used."
Lipsky's visit to Beijing comes at the same time as a trip by French Finance Minister Christine Lagarde. She's looking for Chinese support to become the next IMF chief. But Lipsky says his trip and hers are not directly related.