The International Monetary Fund has declared that Asia is leading a global economic recovery, and expects world output to rise 3.1 percent in 2010, after an expected contraction of by 1.1 percent in 2009.

The IMF's chief economist Olivier Blanchard told a news conference that the strength of the world economy will depend on rebalancing global growth and that changes in current exchange rates will need to take place.

"In general, it is very hard to see how global rebalancing does not come with an appreciation of Asian currencies of various degrees," he said, without mentioning China's currency, the yuan, which the IMF has said is substantially undervalued.