European Finance Chiefs Prod China to Let Yuan Gain – Simon Kennedy and Sandrine Rastello
European finance ministers pressed China to let its currency strengthen so their economy no longer bears the brunt of the drop in the U.S. dollar.
With the dollar plumbing record lows against the euro this month, the officials meeting yesterday in Brussels complained Europe’s economy is shouldering a disproportionate share of the impact. Europe expects “some adjustment with respect to the exchange rate” in China, Finance Minister Michalis Sarris of Cyprus told reporters. Spain’s Pedro Solbes said there should be a “rebalancing with the Asian currencies.”
The officials are stepping up complaints two weeks before a European delegation arrives in Beijing to make the case for a stronger yuan. While the currency has gained 5.1 percent against the dollar this year, it has dropped 4.7 percent against the euro, hurting Europe’s exporters. [Full Text]