London: The United States still believes China`s yuan currency is undervalued, unlike the International Monetary Fund, US Treasury Secretary Jack Lew said Wednesday.
"We continue to think it`s undervalued," Lew said in a talk at the London School of Economics university.
The IMF said Tuesday that the yuan, also known as the renminbi (RMB), was no longer undervalued.
"The standard has to be: what will they do when there`s pressure on the RMB?" asked Lew.
"For competitive purposes, will they continue to refrain from intervention?"
The yuan`s value has been a source of tension for years, with China`s major trade partners -- led by the United States -- accusing Beijing of keeping it artificially low to give Chinese exporters an unfair competitive advantage, which Beijing has denied.
"Going forward, are they truly committed to having a market-determined exchange rate?" Lew asked.
China keeps a tight grip on the value of the yuan out of concerns that unpredictable currency inflows and outflows could harm the economy and weaken its financial control.