Acting Managing Director of the International Monetary Fund (IMF) John Lipsky is in Beijing for a routine consultation on the Chinese economy. We talked with him one on one to answer some of your most pressing questions.

John Lipsky, Acting Managing Director of the IMF, says the transformation of China’s economic growth pattern is important to the rest of the world.

The fund maintains its forecast for China's growth at 9.5 percent. That holds for both this year and the next.

SOUNDBITE (ENGLISH) : JOHN LIPSKY, ACTING MANAGING DIRECTOR OF IMF
"I've joining my colleagues to be here for several weeks for the annual consultation mission to discuss with many officials outlook the Chinese economy. And we have reiterated our long-standing forecast of around 9.5 percent growth this year and next year.  So, we're quite confident continue the strength of the Chinese economy." (这里断开的是用在下一段同期了)

He expects inflation, which has stood above five percent for several months, to slow to around four percent by year-end. He is confident in the messures taken to combat the climb.

SOUNDBITE (ENGLISH) : JOHN LIPSKY, ACTING MANAGING DIRECTOR OF IMF
"At the same time, we do think that the measures have been put place to resist the inflation pressures as well as the natural tendency for the price, energy and commodities to dissipate over time. We do expect the inflation will slow in the coming year."

On China's monetary policies, Lipsky suggests a more balanced use of monetary tools, including more reliance on interest rates and less use of direct administrative limits on loan growth.

He says China should strengthen its monetary policy framework, improve regulatory, supervision and financial stability framework, and deepen and develop financial market. Lastly, he recommends China eventually move toward the longer-term goal of an open capital account with the renminbi as a fully convertible currency.

SOUNDBITE (ENGLISH) : JOHN LIPSKY, ACTING MANAGING DIRECTOR OF IMF
"First of all, my understanding on China's policies over the coming years is to increase exchanging rate that currency flexibility with regard to a basket of currencies that the gradually the RMB will become a more market-based currency in an open capital market. In other words we will become a normal, freely usable, international currency and those are criteria, for example, inclusion of a basket of currency of the SDR…. Is to be freely usable, to be the currency widely use in international trade. I have confidence that the long-term future for the Chinese currency and as the financial markets in RMB become more developed, more liquid, more open to international use. That will become increasingly used as well as the reserve currency."

Lipsky also speaks highly of China's 12th Five-Year Plan (2011-2015) and expresses his confidence in the sustainable development of China's economy.

SOUNDBITE (ENGLISH) : JOHN LIPSKY, ACTING MANAGING DIRECTOR OF IMF
"The goals of the 12th Five Year Plan are correctly oriented in the interest of improving not just the performance of China’s economy but the well-being of Chinese people. But of course the details of policies are going to be form the heart of that plan will be developed in the coming months and years and that will be crucially important."

Lipsky says the country's 12th Five-Year Plan shows its determination to prevent a renewed expansion of its current surplus. In the plan, the government pledges to further strengthen the social safety net, rationalize the cost of capital and other factors of production and find ways to increase household incomes.

He also stresses the importance of the reform and liberalization of its financial system.

SOUNDBITE (ENGLISH) : JOHN LIPSKY, ACTING MANAGING DIRECTOR OF IMF
"First of all, the crisis of 2008 and 2009 show the importance to all of the world of improving and strengthening the financial systems and that’s why the membership of IMF has decided to make the financial sector assessment program the FSAP, a mediatory for the 25 countries with substantially important financial systems and includes China, the US. (中间这一句删掉：We’re preparing AF for Japan. We've just concluded the one for United Kingdom etc. So, it"s important for global balance first of all.)  But especially in China, as the I’ve already said the development of financial system will be crucially important in supporting for first rebalancing of the Chinese economy towards domestic demand, will help improve the return to household for their savings, will improve the allocation of resources in a sense of a more well-developed of financial system, will help prevent distortions like property price bubbles, will give more stability and accuracy to asset prices. So, it's a very crucial element."

Lipsky also evaluates China’s role and performance on the global stage.

SOUNDBITE (ENGLISH) : JOHN LIPSKY, ACTING MANAGING DIRECTOR OF IMF
"We're quite convinced that with correct policy the implementations of policies that we’ve been discussing so far that China can both preserve rapid growth, establish good economic balance, lower inflation and better external balance that's still consist with a increasing growing role for China in the world economy. With a kind of growth reference, China is going to continue to become the increasingly large portion of the global economy."

Further, he's confident the IMF will choose an effective, energetic and experienced leader, while adding that the selection will be open, transparent and merit-based and the result will be disclosed by June 30.

SOUNDBITE (ENGLISH) : JOHN LIPSKY, ACTING MANAGING DIRECTOR OF IMF
"First of all, the choice of managing director of the IMF is entirely the responsibility of the Fund's 187 member countries, acting through the 24 chair executive board. That board has laid out a very clear process for choosing the new managing director. The period of nominations ends at June 10th. Then there will be a choice of a short list up to 3 candidates. They'll be interviewed by the board and a choice will be made. The goal of this process is a selection methodology that is open meaning open to all, transparent, merrily based. And I’m highly confident that the membership acting together will choose very effective and energetic and talented new managing director.”

Former IMF Managing Director Dominique Strauss-Kahn resigned last month after he was arrested on charge of sexually assaulting a hotel maid in New York. John Lipsky, 64, will retire from his post at the Washington-based financial agency at the end of August.