The International Monetary Fund is close to declaring China's yuan fairly valued for the first time in more than a decade, a milestone in the country's efforts to open its economy that would blunt U.S. criticism of Beijing's currency policy. The fund's reassessment of the yuan—set to be made official in IMF reports on China's economy due out in the coming months—follows years of IMF censure of Beijing's management of the currency. – Wall Street Journal, May 4, 2015

If you've been dying to know whether the Chinese yuan was at fair value, you can finally rest easy. The IMF says it's almost there.

This leaves another question, though. By what authority does the International Monetary Fund decide a currency's value is "fair" or not?

Furthermore, even if the IMF has the authority to make this judgment, does it have the ability to do so correctly?

Of course it doesn't. No one does. Like everything else, a currency's "fair value" lies at the intersection of supply and demand. All the IMF needs to do is leave the market alone. It will very quickly tell everyone what value is "fair."

Of course, the IMF can't leave the market alone because its very existence is an attack on the market. Its mission is not to help markets operate, but to stop markets from operating. This is necessary so that its international banker overlords can manipulate asset prices and further enrich themselves.