The International Monetary Fund(IMF) said Tuesday that China's currency does not appear "substantially undervalued."

In a report following annual consultations with China, the IMF said, "Most directors noted that there is no clear evidence that the Renminbi is substantially undervalued at this juncture."

"Directors also felt that a currency revaluation would not by itself have a major impact on global current account imbalances --particularly given China's relatively small share in world trade," the report said.

The IMF report also said that a flexible exchange rate for the Chinese currency would be in China's interests.

Some US lawmakers have asserted that China is manipulating its currency to gain a competitive edge in trade with the United States.

However, the US Treasury Department said at the end of last month that China is not violating an American law against currency manipulation to gain unfair trade advantages.

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