The International Monetary Fund has attributed part of China’s booming exports and rising trade imbalances to a real depreciation of the yuan, adding to debates over the effects of a weaker currency.

Following its annual review of China’s economy, IMF officials noted that the country’s relatively low inflation compared with trading partners has contributed to a weaker yuan in real terms.

They encouraged Chinese policymakers to pursue bolder stimulus measures to boost consumption, which would support higher consumer prices, while allowing greater flexibility in the exchange rate.