Multilateral lending agency says currency is 'not undervalued'

The Chinese currency, known as the yuan or renminbi, is "no longer undervalued", the International Monetary Fund said on Tuesday in Beijing, after maintaining for a long time that China's currency was "modestly undervalued".

"While undervaluation of the renminbi was a major factor causing the large imbalances in the past, our assessment now is that the substantial real effective appreciation over the past year has brought the exchange rate to a level that is no longer undervalued," the IMF said in a statement after a visiting team completed consultations with Chinese officials.