G7 Focus on Chinese currency

China has been called by G7 finance chiefs to allow its currency, the Yuan, to appreciate faster, according to AFP reports. They believe this will ease global economic imbalances.  

"We welcome China's decision to increase the flexibility of its currency, but in view of its rising current account surplus and domestic inflation, we encourage accelerated appreciation of its effective exchange rate," said the G7 ministers in a joint statement.

The G7 finance chiefs did not mention the weakness of the dollar, and instead focused on their views that foreign exchange rates should mirror fundamentals and that excess volatility is detrimental.