From Bloomberg:
European finance ministers said China should allow the yuan to appreciate against the euro after failing to find a common position on their currency’s rally to a record against the dollar.
“It is desirable that effective exchange rates move so that necessary adjustments will occur,” the ministers said in a statement released late yesterday after a meeting in Luxembourg. European Central Bank President Jean-Claude Trichet and European Union Monetary Affairs Commissioner Joaquin Almunia will travel to China this year with Luxembourg Prime and Finance Minister Jean-Claude Juncker, who chaired the meeting.
European officials, who are preparing for next week’s meeting of the Group of Seven nations in Washington, are becoming irked with China after a July 2005 revaluation of its currency failed to stem trade imbalances between the two economies. While the dollar has increased 10 percent against the yuan in the past two years, the euro has declined 5 percent in that period. [Full Text]
