Comments in the IMF external sector report

  • USD is 6-12% overvalued relative to US fundamentals
  • Yuan is at levels warranted by economic fundamentals
  • China's global current account surplus fell to 0.4% in 2018 from 1.4% in 2017 and 10% in 2007

No big surprises here. The previous report from a year ago said the dollar was 8-16% overvalued.