Today Digital – The IMF report reveals that the US dollar is overrated

The International Monetary Fund (IMF) yesterday revealed that the US dollar is overvalued and that the Chinese yuan is in line with the fundamentals of the economy, while nearly half of the world's current balances are excessive . 19659002] In its annual report on the external sector, which badesses exchange rates and current account balances, the IMF indicated that deficits and surpluses are increasingly concentrated in advanced economies

. data and projections of the IMF team until June 22.

The report shows that his team of experts estimated that the dollar was once again overvalued compared to the levels included in the medium-term fundamentals, at about 8-16% last year

However, the Chinese yuan has fallen considerably in recent weeks, coinciding with an increase in trade tensions with the United States. [1] 9659002] The Chinese yuan reached its lowest level in 13 months, at 6.8295 yuan for one dollar, after the Chinese authorities showed signs of greater monetary flexibility to support the economy in the context of an escalation of the tariff war with the United States. United

US Treasury Secretary Steven Mnuchin said Friday that he was concerned about the fall of the yuan and that his team would carefully consider whether China was manipulating its currency.

The team estimated that China's current account surplus slightly increased last year to 1.7% of gross domestic product and placed the country among those with balance sheets excessive.

Other countries with excessive current surpluses mentioned by the IMF were Germany, South Korea, the Netherlands, Sweden and Singapore.

The Monetary Fund Report specifically identified countries with a current account deficit, ie those who take too many loans, in the United States, the United Kingdom, Turkey and Argentina. .