IMF to China: ease exchange rate controls

International Monetary Fund chief urges China to loosen valuations of yuan against the dollar in effort to address global imbalances.

The managing director of the International Monetary Fund said Friday he is urging Chinese leaders to ease exchange rate controls to address global financial imbalances and their own economic challenges.

Slower U.S. economic growth should affect China but the IMF still expects the economy to expand about 10% this year, said Dominique Strauss-Kahn. He met Thursday with Premier Wen Jiabao and other Chinese leaders.

"What I am working at is trying to explain to Chinese authorities... that it's in their own interests to have more flexible exchange rates," Strauss-Kahn said. He said that would "help to address both China's economic challenges and global imbalances."

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