Dollar depreciation reflects value: IMF's Lipsky

The dollar is now the closest to its medium-term equilibrium value it has been in a decade and is set to remain the global reserve currency, said John Lipsky, the first deputy managing director of the International Monetary Fund.

Lipsky also warned that the euro was overvalued and that currencies in many current-account-surplus countries, including China, remain substantially undervalued.

The IMF's analysis of real exchange rate levels show the dollar to have declined by 25% since early 2002 -

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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