Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 541 Sun. December 04, 2005  
   
Business


G7 to urge China to go further with yuan revaluation


The Group of Seven economic powers would appeal for China to go further with its yuan revaluation policy, a European source told AFP.

The G7 finance ministers and central bankers would make the appeal in the communique issued at the end of their weekend meeting here, the source added.

Chinese Finance Minister Jin Renqing had said on Friday that his government believed it was important to carry on with a revaluation of the yuan, but he added that the process would be "gradual".

French sources also said Friday that Renqing had told his French counterpart, Thierry Breton, that "it is very important to continue" with the revaluation.

Back in July, China's central bank scrapped an arrangement under which the yuan was fixed in a narrow range around 8.28 to the dollar.

Instead, a managed floating exchange rate system based on a basket of currencies was introduced, and the yuan was revalued by about 2.1 percent against the dollar.

At its previous meeting in September, the G7 welcomed the Chinese move.

The United States and the European Union have long sought to pressure Beijing to adopt a more flexible exchange rate policy. They argue that the yuan is undervalued and currently gives Chinese exporters an unfair advantage.