By Daniel Hunter
The International Monetary Fund (IMF) has called for "greater flexibility" from China on currency exchange rates.
The IMF warned that China should reduce intervention in foreign exchange as it battles slowing economic growth.
China is understood to be deliberately keeping the value of the yuan low in order to boost exports, much like Switzerland had done. Switzerland had capped the value of the Swiss Franc against the euro, but in January it ended that cap, causing mayhem in its financial markets as the value of the currency surged.
The IMF predicted China's economic growth would stabilise at around 6% in 2017. Despite having one of the fastest growing economies in the world, China has seen the rate of growth fall over the past two years - to 25-year lows.
In its report, the IMF said the fiscal stimulus should be China's first action to tackle slowing growth and should "reorient the economy away from excessive reliance on real estate, heavy industry, and external demand".
