The International Monetary Fund Managing Director Dominique Strauss-Kahn said that the yuan is undervalued and should be free to bargain in that case, if China wants to make his international currency.
 

With the growth of China"s role in the global economy will grow and the role of its currency, said the head of the IMF, speaking at a press conference in the Asian Financial Forum in Hong Kong. Earlier, China rejected calls for U.S. and EU that the RMB exchange rate should set the market. Forecasts of further strengthening of the RMB have led to a greater influx of foreign capital in China.
 

"Asian governments are now concerned about how to manage these flows, their impact on the exchange rate on domestic demand, financial stability, and the emergence of bubbles in asset markets. In many countries, the exchange rate should become a key decision especially where the currency is undervalued, "- said Strauss-Kahn.
  

Foreign investors are actively investing their money into Asian assets, as this region led global economic recovery. Public expenditure on Asian economic recovery exceeded $ 2 trillion. Index MSCI Asia Pacific Index rose by more than 50% compared with last year.
 
 

In such circumstances, the Chinese authorities have to cope with record growth in lending, which fueled the boom. The growth of foreign direct investments in the country in December 2009 rose by more than 2-fold, compared to the same period in 2008. According to the forecast of analysts surveyed by Bloomberg, China"s GDP in the last quarter grew by 10,5%. Release of official data on this is expected tomorrow, 21 January.
  

"There has been a surge in capital inflows to emerging markets, with most of them got Asia. These flows reflect the prospects for these countries."s expectations about the future course of national currencies also played a role," - said Strauss-Kahn.
 

According to a senior economist at Asian Development Bank Dunyunyaed1Park, the PRC government may allow the yuan to rise from the III quarter of this year. China supports the national currency at around 6.83 yuan to $ 1 in July 2008, after it gave him would be strengthened by 21% over the previous three years.
  

Last December, China"s reserves in foreign currency increased by 23% over the same period last year to an unprecedented amount of $ 2.4 trillion. They say the data of the Central Bank of China, published last week.
 
  

Strauss-Kahn acknowledged that Asia is the locomotive of economic recovery in the world and plays a "vital role" in the global economy. According to him, 2010 will be the "year of transformation for peace" and stability of local economies, excluding Japan, will lead to growth of GDP of these countries by more than 7%. This means that many developing countries have curtailed government support of the economy before the developed countries, said Strauss-Kahn.

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