THE YUAN AND THE G20

G-20 REFUSES TO BACK US PUSH ON CHINA'S CURRENCY

Vijay Joshi

The Associated Press

The Washington Post, November 12, 2010

SEOUL, South Korea -- Leaders of 20 major economies on Friday refused to endorse a U.S. push to get China to let its currency rise, keeping alive a dispute that has raised the specter of a global trade war.

At the end of their two-day summit, the leaders of the Group of 20 rich and developing economies - including President Barack Obama and China's Hu Jintao - issued a watered-down statement that only said they agreed to refrain from "competitive devaluation" of currencies.

Such a statement is of little consequence since countries usually only devalue their currencies in extreme situations like a severe financial crisis. Using a slightly different wording favored by the U.S. - "competitive undervaluation" - would have shown the G-20 taking a stronger stance on China's currency policy.

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