On valuations of the yuan.

• Author: Rees, Matthew
• Position: China - Brief article

"On June 13th ... the Treasury decided yet again not to brand China a currency 'manipulator' in its semi-annual report on exchange rates, but confidently declared that the yuan was 'undervalued.' And on June 18th the 1MF also announced a new framework for monitoring countries' exchange-rate policies. It will track indicators such as heavy foreign-exchange intervention and 'fundamental exchange rate misalignment' in order to identify countries that are unfairly manipulating their currencies."

"This activity is based on the widespread assumption that the Chinese yuan is hugely undervalued against the dollar. Yet the awkward truth is that it is almost...