IMF’s Obstfeld: Not concerned about China’s ability to defend CNY

The International Monetary Fund (IMF) Chief economist Maurice Obstfeld said on Tuesday that he was not worried about the Chinese government’s ability to defend its currency, despite the recent depreciation of CNY, according to Reuters.

Key comments

• Growth has reached a plateau but is more uneven among countries.
• IMF concerned about higher levels of public debts and lower interest rates, leaving less room to deal with the downturn.
• The IMF has ‘optimistic’ Brexit outlook for tariff-free trade in goods, financial services favorable to the UK.
• The IMF continues to recommend that China focus on quality and sustainability of growth, not the quantity of growth.
• China should balance actions to support growth with the need to maintain financial stability.
• The IMF has not been formally approached by Pakistan for financial assistance.
• Pakistan currency too rigid, overvalued.
• Indonesia could benefit from more openness to foreign direct investment.
• Indonesia needs more and better infrastructure.
• Not worried about Chinese yuan depreciation, not a problem for the Chinese government to defend its currency.