By Jonathan Davies

China's currency, the yuan, is "no longer undervalued", according to the International Monetary Fund (IMF).

In a statement, the IMF said: "Our assessment now is that the substantial real effective appreciation over the past year has brought the exchange rate to a level that is no longer undervalued."

The US had long complained that China had kept the currency artificially low in order to boost exports.

Earlier this month, the IMF called for "greater flexibility" from China on exchange rates.

The focus comes as China battles slowing economic growth. Despite remaining as one of the fastest growing economies in the world, growth has slowed it its weakest in quarter of a century. But it is predicted that China's growth will stabilise at around 6% in 2017.