G7 Statement Increases Pressure on China

As expected, at this weekend's G7 meeting in Washington, the finance ministers and central bank governors increased pressure on China to let CNY appreciate faster. The wording on China was the only major change in the foreign exchange statement compared to the last G7 meeting in April 2007.

19 October G7 statement

"We welcome China's decision to increase the flexibility of its currency, but in view of its rising current account surplus and domestic inflation, we stress its need to allow an accelerated appreciation of its effective exchange rate."

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