IMF says China needs more flexible currency rate
13 September 2005
IMF directors said China needs to loosen the leash on the yuan in order to insulate the economy from the volatility of foreign exchanges. It also said China had a responsibility to help smooth out current global imbalances, in part caused by its yuan exchange rate. The IMF also advised China to allow its central bank to set interest rates and to raise its dependence on market-based instruments.