Beijing (Reuters) - China's economic soft landing and even global headwind gain settings, the International Monetary Fund (IMF) said on Wednesday's report calling for further reform and currency appreciation to balance economic growth and risk reduction.
The report said that economic reforms to date have been significantly reducing the external imbalance, but to promote the economic growth mode, driven by the investment costs of major domestic imbalances.
A key change, the IMF said that China's yuan is underestimated. "Moderate softening of the previous language, an annual review of a risk warning of economic growth, if the investment in order to reduce substantially or if you have a bad sudden rise loans. But it stressed that Beijing's ability to deal with the potential impact.
Policy should continue to can achieve the growth target this year, facing the prospect of deterioration in the external circumstances, Chinese have plenty of room to respond forcefully, as a defense of the main line and key measures to support medium-term reform of China's fiscal policy objectives, the IMF report said. "
The new language of the IMF on the currency, reflecting the growing number of Chinese yuan closed after about a decade, and its fair value at the level of human weak, may reduce it as a political or international trade issues, international consensus.
"RMB has been assessed as moderate underestimate reflect the underlying current account revaluation, slower accumulation of international reserves, and the appreciation of the real effective exchange rate of the past," the report said.
The IMF's medium-term forecast current account surplus fell to between 4% and 4.5% of the gross domestic product.
The IMF's view is that the exchange rate still has an "unusual" ways to enjoy the IMF Asia-Pacific Deputy Director, Marcus Rodlauer told reporters on Wednesday the He did not give an exact value.
Last year's report, said the yuan "substantially undervalued" between the RMB against the U.S. dollar by 3% and 23%, depending on the method used.
The report of the China factor refused to fell sharply, the yuan has not been very seriously thinking.
Zhang Tao, IMF executive director, said: "This assessment, in our government's point of view, it is not realistic," the official response from the Chinese authorities, including in the report.
"Show that the sharp decline in the current account surplus and a recent two-way movement for the yuan currency is more or less balanced."
Debt risk
New current account surplus relative to GDP forecast about economists believe is a very valuable currency, as well as with U.S. Treasury Secretary Timothy Geithner had previously said it would help to maintain the consistency of horizontal lines of the global economy, and balance.
China's large trade and current account surpluses, over the past few years to promote with other countries, especially the U.S. trade tensions.
The IMF report warns that economic risks, especially banks or local governments will bear the burden of bad loans - many arising from the 2008 China's stimulus package - if the economy slowed sharply.
Other proposed reforms to better price signals to China's move to give banks more flexibility in setting interest rates, more financial investment options, in order to avoid another leap into the real estate speculation and tax changes to support an investment-led turned to consumer-led economic growth.
"The exchange rate issue is a need to rebalance the economy part of the reform of the package, Rodlauer said.
He added, "Without these reforms," ??It would be very likely that the current account surplus will once again, rather than it is now more than ever.
Will be necessary in the gradual appreciation in the next few years. "
May trade for the Chinese yuan against the U.S. dollar 6.3429 set on Wednesday, December 2011, the midpoint of the weakest points. The yuan-dollar exchange rate fluctuations since the beginning of this year, reversing years of steady, one-way appreciation.
China allowed the yuan in April's trading range has doubled, said the currency may rise or fall 1 percent of the midpoint.
The IMF last week cut its 2012 growth forecast to 8 percent from 8.25 percent in April to assess, reiterated that the maximum external risks facing the country is the deterioration of the debt crisis in the euro zone.
The IMF's view is 7.5 percent above the government target line in the latest Reuters poll of analysts estimate.
Reminder of the risks to economic growth China's Ministry of Industry on Wednesday, 1 unrelated statement, the downward pressure on domestic and foreign customers is still the enterprises believe that despite indications that the pro-growth policy actions from Beijing , to gain traction.
Beijing have been guided by the policy of "fine tuning" the program, since the fall of 2011, lower interest rates, relaxing the rules on bank lending, fast-track expenditure and business tax and cut red tape.
"We can see from the economic stability of the industrial sector, a relatively clear indication" that the Chief Engineer Zhu Hongren, scheduled a news conference said.



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