The International Monetary Fund (IMF) stated on Monday, April 11 that, while China's exchange rate policy has boosted its domestic economy, the global economic recovery may be threatened if the Chinese currency (RMB) does not appreciate at a faster rate.
The IMF stated in its 2011 World Economic Outlook report that the rebalancing of supply and demand is a major issue in the sustainability of world economic recovery in the medium term.
The IMF said that the Chinese currency is still undervalued, indicating that, although the US dollar has depreciated by about five percent compared with 2007 levels, it "still remains somewhat high relative to its fundamentals."