With the euro hitting a historic high, finance ministers mounted pressure on China to adjust the yuan’s value against the euro, ahead of a meeting of G7 finance ministers next week.
Eurozone finance ministers on 8 October urged China to adjust the yuan’s exchange rate, as pressure increases to act on the continued strength of the euro. The euro hit a historic high when it valued at 1.43 dollars on 1 October.
“In emerging countries with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments occur,” ministers said in a statement.
European Central Bank President Jean-Claude Trichet, Economic and Monetary Affairs Commissioner Joaquin Almunia and Eurogroup President Jean-Claude Juncker are set to travel to China this year to discuss monetary issues.
With this statement, the EU is joining the US in its criticism of China for keeping the value of the yuan, its currency, artificially low in order to boost exports, which has triggered the euro’s appreciation. However, EU finance ministers also voiced concerns about the undervaluation of the dollar and the yen.