IMF sees Chinese progress currency reform, but some members still believe yuan is undervalued

Some IMF members say China’s currency undervalued

WASHINGTON — The International Monetary Fund is welcoming China’s progress in letting the market determine the value of its currency, the yuan, but says some countries believe it remains “substantially undervalued.”

The IMF says many members believe further strengthening the yuan should be part of a comprehensive Chinese strategy to rebalance the economy, but others say it would play only a supporting role toward promoting changes.

In its annual report on the Chinese economy, the IMF did not name individual countries’ positions on the yuan. But the United States and other Beijing trading partners have said the yuan is undervalued, which gives unfair advantage to Chinese exporters.

The IMF said Wednesday that China’s growth is expected to slow this year to 7.5 percent from 9 percent in 2008.