IMF softens stance on China’s currency

The move is likely to anger congressional critics who continue to argue that China is manipulating its yuan to make its exports cheaper here and to make U.S. products more expensive in China.

{mosads}Last October, the Senate passed a bill by a 63-35 vote that would authorize duties on imports from countries found to be manipulating their currencies. It was sponsored by Sens. Charles Schumer (D-N.Y.), Lindsey Graham (R-S.C.), Sherrod Brown (D-Ohio), and Olympia Snowe (R-Maine).

The House has refused to take up the measure and the White House last month once again declined to name China a currency manipulator.

GOP presidential candidate Mitt Romney, however, has vowed to name China a currency manipulator, a designation that would spark negotiations with China.

The IMF shift came as the fund predicted that China’s economy, the world’s second largest, would slow this year to having 8 percent growth rather than 9.2 percent. Lipton praise China for lowering a key interest rate on Thursday in order to spark more robust growth.