The chief economist of the International Monetary Fund has no doubt that China is able to protect the currency. “No, I don’t think this is a problem,” – said Maurice Obstfeld when asked about the problem at a press conference after the annual meeting of the IMF and the World Bank in Bali.
However, Obstfeld also noted that Beijing will face the so-called “balancing action” between such phenomena as economic growth and ensuring financial stability.
This year, the value of the RMB faced strong sales pressure losing more than 8% between March and August — at that time the authorities took measures to support the currency.
The US Treasury spokesman reiterated on Monday that Trump administration is concerned about the recent weakening of the yuan and the department is preparing a semi-annual report on currency manipulations, which is due next week.