IMF says China to benefit from yuan appreciation

China's economy will benefit from a government decision to allow greater exchange rate flexibility for the yuan, according to an IMF economist.

Joshua Felman, IMF economist for Asia and Pacific, said a stronger yuan might reduce China's huge trade surplus, make its imports cheaper, and boost domestic consumption.

"Greater exchange rate flexibility, which would likely lead to an appreciation in the near term, could raise consumption by cutting the cost of imports and boosting households' purchas

To continue reading...