IMF Says China’s Currency No Longer Undervalued
The International Monetary Fund announced on Tuesday that for the first time in over a decade China’s currency is no longer undervalued (SCMP). U.S. policymakers have long criticized China’s artificial weakening of the renminbi, and the issue of currency manipulation has been at the center of deliberations over trade deals in the U.S. Congress.
With currency markets rigged everywhere and central banks intervening either to support or devalue their currencies according to the politics of the day, there is no free currency market. Only free markets deliver real prices; therefore, in a free market no good is ever undervalued or overvalued. There is only the latest price at which buyers and sellers agreed to an exchange.