G20 drops sensitive wording on yuan reform

[CHIMO]

Source: Toronto — Reuters

World leaders looked set to ditch plans to welcome Beijing’s shift towards greater exchange rate flexibility at a G20 summit Sunday, financial policy sources said, highlighting China’s sensitivity over the issue.

Negotiators had hoped a statement to be signed by the leaders in Canada could include a line welcoming last week’s announcement that Beijing was ending a de facto peg that has hooked the yuan to the U.S. dollar for much of the past two years.

Andrei Bokarev, Russia’s deputy sherpa and a finance ministry official, said most Group of 20 members welcomed China’s plans to adopt a more flexible yuan but any reference to it was removed, at China’s request, from the communiqué to be published at the end of the meeting.

“The majority of the members of the G20 welcomed the plans of the government of China on introducing a floating yuan rate,” Mr. Bokarev told reporters, “But in the final communiqué this phrase will not be in there at the request of the Chinese side.”


Read more: http://www.theglobeandmail.com/news/world/g8-g20/economy/g20-drops-sensitive-wording-on-yuan-reform/article1620584/

[JDPriestly]

1. Sounds like China is looking for a way out.

It doesn't want to make a firm commitment. Oh, well. I'm not boycotting Chinese goods. I just don't have much money to spend, so I buy very little of it.

Amazing how nice life can be without all their junk.