IMF: Chinese yuan's global impact gradual, steady
The International Monetary Fund has foreseen a steady and gradual impact of the Chinese currency's recent revaluation and would not be the "quick-fix" in all the global economy's ills.
IMF Managing Director Dominique Strauss- Kahn said in a press conference today in Washington: "I do not expect that things are going to change very rapidly. It will take time for the renminbi to reach its normal market value.
China's move to scrap the yuan's two-year-old peg to the dollar according to Chinese President Hu Jintao is to further advance emerging economies.
The Group of 20 economies, on the other hand, called for "greater exchange-rate flexibility in some emerging markets."
Kahn noted that even a strong revaluation of the renminbi "will not immediately solve the all the imbalances -- far from that, adding that it's time for Asia's fourth largest economy to progressively go back to normal."
He gave credit to other Asian economies, such as South Korea and India, following the worst global recession in the post-war era has been "impressive," Strauss-Kahn said.