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Gita Gopinath, first deputy managing director at IMF, states that merely referencing IMF assessments of a country's currency as undervalued or overvalued is insufficient to predict currency movements.
She explains that the way these estimates are constructed does not imply that a country with an undervalued or overvalued exchange rate will necessarily experience currency appreciation or depreciation through exchange rates.
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In recent commentary, Gita Gopinath said that China’s reliance on capital controls does not currently indicate one-sided currency manipulation, according to the IMF’s assessment in previous reporting. She has also argued that currency imbalances often stem from underlying macro policy choices, as detailed in an earlier analysis. These observations add context to Gopinath’s current statements on the limits of currency valuation metrics.