The yuan is substantially undervalued despite China's plan to adopt an effective exchange rate, says the International Monetary Fund.
The Wall Street Journal reports that IMF's latest review of the Chinese economy could put pressure on China to let the yuan further appreciate. The long-delayed analyses could also prompt the government to block the IMF from publishing a detailed summary of the review. The Journal explains that since 2007 China has prohibited IMF from conducting an annual review of its economy.
Beijing earlier announced it would adopt an effective exchange rate to fight inflation and improve effectiveness of monetary policy.