IMF to begin discussions on its delayed review of China’s economy next week
THE International Monetary Fund’s (IMF) board will discuss a long-delayed assessment of China’s economy on 8 July after it revised rules on how it assesses the foreign-exchange policies of member countries.
Fund spokeswoman Caroline Atkinson said an IMF staff mission had concluded the China economic review on 10 June and it would now go to the IMF board for discussions.
China has blocked the report since 2007 after the IMF changed its rules that year on how it monitors foreign exchange rates of member countries. Beijing considered the decision a ploy by the US to enlist the fund in its campaign for a stronger Chinese yuan.
Such reviews are conducted annually by IMF staff for all of the fund’s 186 member countries.
But in a move widely seen as trying to mend relations with China, the IMF this week reversed guidelines on staff currency assessments, saying they should no longer seek to label currencies as “fundamentally misaligned”. IMF staff have long complained their ability to have frank discussions with member countries was undermined by the label.