IMF urge relaxing of yuan peg to ease bad loans

The International Monetary Fund (IMF) has advised China to relax the yuan's dollar peg to help rein in excessive credit growth that threatens to cause a build-up of bad loans in the banking system.

IMF deputy managing director Takatoshi Kato on Wednesday 19 May outlined a positive outcome for the mainland with the relaxation of the yuan peg. ``More flexibility in the exchange rate is in China's best interest because it would help shield the money supply from international influences, moderate