Forex Blog

January 12, 2010

EU Describes Weak Yuan a “Major Problem”

Newly-installed EU trade chief Karel De Gucht, described China’s policy of maintaining a weak currency as a “major problem” for the economic recovery.

“It is obvious that the undervaluation of the Chinese currency is a major problem,” he said after a confirmation hearing with European Union lawmakers. “It is clear to me that this is a deliberate policy and we should address this at all possible occasions, bilaterally and also multilaterally.”

Tensions over cross-border trading have increased in recent months and rumours continue to swirl that the EU could introduce additional anti-dumping measures and import taxes.

AFP News

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