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G20

Yuan is strong after close of G20 summit

Reuters
1 min

The Chinese currency rose to the highest level against the dollar in years on Monday after the end of the summit of the world's 20 leading economies. The G20 wrapped up two days of talks in Toronto Sunday, calling for advanced economies to half their deficits by 2013 and stabilise or reduce government debts by 2016.

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The G20 statement also called for "greater exchange rate flexibility in some emerging markets", a clear nod to China which has been pressured to allow its currency, the yuan, to strengthen in order to ease trade imbalances.

US President Barack Obama addressed China directly, saying that he expected Beijing to make good its promise to allow greater flexibility of its currency.

Critics say the currency is currently 40 per cent undervalued, giving Chinese exports an unfair advantage over other markets.

After the summit on Monday, China set the strongest yuan exchange rate in years, the dollar edged up, and Europe’s main stock markets rallied.
 

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