French foreign minister Alain Juppe called the Yuan an underestimated currency, Associated Press says. This statement was made just before the G20 summit which is to take place in Cannes in November. Among other issues to be discussed at the summit, there is a big state debt of several developed countries to pay back to China.
On Wednesday, September 14, Juppe will pay a visit to Beijing. He said he is planning to discuss the question of the Yuan liberalization with the Chinese authorities. "We have as an objective that China's position evolve in a certain number of areas, in particular in terms of currency," Juppe told reporters.
World’s leading economies, the US in particular, have been charging China with an intention to make the Yuan rate more flexible. Since then the China’s central bank has increased the Yuan rate against the US dollar several times. As a result, the Chinese currency has strengthened versus the dollar by approximately 5%.
According to Juppe, the world economic system fails to meet the required parameters of sustainable development. He informed that one of the most crucial issues of the G20 summit concerns the ways to change this system to ensure further stability.
