EU Business Group: Asks ECB's Trichet To Push China Yuan Value
BRUSSELS -(Dow Jones)- The European Union's main business lobby has asked
European Central Bank President Jean-Claude Trichet to push China to let its
currency appreciate.
Trichet, Luxembourg's Prime Minister Jean-Claude Juncker and European
Commissioner for Economic and Monetary Affairs Joaquin Almunia are due to meet
Chinese Prime Minister Wen Jiabao, Peoples' Bank of China Governor Zhou
Xiaochuan and other high-ranking officials in Nanjing Sunday.
The trio's trip is a repeat of an appeal they made in November 2007, when they
went to China and asked for the yuan to appreciate against the U.S. dollar. For
most of the past two years, China has kept its currency trading close to CNY6.85
to the dollar, allowing only minor fluctuations.
BusinessEurope, which represents EU business federations in talks with EU
institutions, including the ECB, told Trichet in a letter that China's fixed
exchange rate is putting pressure on the euro-zone economy.
"It is our strong belief that a precondition for a return to global growth and
financial stability is to ensure that macroeconomic and exchange rate policies
do not perpetuate past mistakes," the letter said.
"Chinese authorities need to consider renewed appreciation of the [yuan] and
to introduce more flexibility in their currency system," the letter added,
asking Trichet to hold "open and frank" talks with Chinese officials.
-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com
(END) Dow Jones Newswires
11-25-091022ET
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