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To: Joe S Pack who wrote (41698)	11/18/2003 8:12:37 PM
From: Joe S Pack	Read Replies (1) \| Respond to of 74559

IMF says no clear evidence China yuan undervalued Tue November 18, 2003 07:56 PM ET (Page 1 of 2) (Adds details from conference call) siliconinvestor.com By Lesley Wroughton WASHINGTON, Nov 18 (Reuters) - The International Monetary Fund said on Tuesday there is no clear evidence that China's yuan is substantially undervalued, countering claims by U.S. exporters that the currency has been kept artificially low to give Chinese exports an advantage. U.S. officials have been pressing China, the world's sixth-largest economy, to loosen its yuan peg to the dollar that would ease the trade distortion with the United States that lies heavily in favor of China. But in a review of the Chinese economy, the IMF said a currency revaluation would not by itself have a major impact on global current account imbalances, particularly given China's relatively small share in world trade. It said more flexibility of the yuan, also known as the renminbi, would be in China's own interest. It would allow China more room to pursue an independent monetary policy, help cushion the economy against external shocks and help with adjustments to the structure of the economy, the fund added. "Directors considered that China could, in a phased manner, introduce more flexibility to its exchange rate without causing major disruptions to its economy," the IMF said. The timing of such a move should, however, be left to Beijing and its assessment of the market, said Steven Dunaway, senior advisor in the IMF's Asia-Pacific Department. "We're not advocating a floating of the currency. What we're talking about is some increased movement in the exchange rate," Dunaway said on a conference call. Such movement could take place by widening the band in