Former IMF Chief Economist Says China’s Currency Is Overvalued

‘If China were to open its capital markets more, there would actually be downward pressure on the exchange rate,’ said economist Kenneth Rogoff.

The headquarter of the People's Bank of China in Beijing on Dec. 13, 2021. Andrea Verdelli/Bloomberg via Getty Images

While many economists criticize China’s long-term suppression of the RMB exchange rate and call for further appreciation, former International Monetary Fund (IMF) chief economist Kenneth Rogoff stands out, stating that the RMB is overvalued.

“If China were to allow its citizens to invest freely abroad, the currency would go down a lot. So in that sense, it’s still overvalued.” Rogoff told The Epoch Times.