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11/29/09

The Globe and Mail: China refuses to budge on EU plea to boost yuan - by Carolynne Wheeler

For the complete report from The Globe and Mail click on this link

Senior European economic leaders have failed in their bid to persuade China to allow its currency to appreciate, dashing hopes of taking pressure off struggling European exports and the soaring euro. Jean-Claude Juncker, prime minister of Luxembourg and chair of the Eurogroup of finance ministers, warned yesterday sun following talks with senior Chinese officials that it was difficult to justify the yuan's depreciation against a basket of currencies, given China's rapid economic growth.

“We think an orderly and gradual appreciation of the [yuan] would be in the best interests of China and of the global economy,” Mr. Juncker told a press conference in the eastern city of Nanjing, after meeting Chinese Premier Wen Jiabao. However, he acknowledged that he was not “more optimistic than I was before I came here” about the prospects for a change in China's currency policy.

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