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G8 to urge China to reform currency policy
TOKYO - The Group of Eight countries plan to urge China to cut its trade surplus by adopting a more flexible exchange rate policy, Japan’s Kyodo News reported on Friday.
The news agency said a draft of a statement to be released after a G8 summit in Germany in June says countries that regularly have trade surpluses, particularly China, should adopt a flexible and market-oriented currency policy.
“The draft says addressing trade imbalances is one of the top priorities to keep the world economy stable,” Kyodo said in a report from Tokyo.
“It (the draft statement) says countries that regularly have trade surpluses, particularly China, should adopt a flexible and market-oriented currency policy and make more efforts for reform toward economic development based on domestic demand,” Kyodo said.
The agency said the draft statement says the world economy faces underlying risks such as trade imbalances despite being in generally good condition.
The G8 groups Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
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