IMF Calls China’s Yuan Moves Welcome Step to More Flexible Rate
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The International Monetary Fund said China’s move to link the yuan’s value to market forces is an encouraging step toward what may become a freely floated currency within the next few years.
The changes by China will help it gradually transition “from a tightly managed system linked to the U.S. dollar to one that is more open and more flexible and more responsive to market conditions,” Markus Rodlauer, the IMF’s mission chief to China, said on a conference call Friday. The currency ought to move to “free float” within two to three years, he said.