“We noted that the evolution in terms of the effective exchange
rate is not exactly what we would have hoped ourselves.”
So said Jean-Claude Trichet, who met with Chinese PM Wen Monday and early today. Joining Trichet to try and persuade Wen were Rehn of the EU and Juncker of the Eurogroup.
China played the bond card, as it always does, according to MNI
One European official said that Wen had expressed displeasure that
Europe’s policymakers were calling so publicly for renminbi
appreciation, and that he stressed how his country was supporting the
Eurozone by buying euro area sovereign bonds.
Until China decides it is in its best interest to let its currency rise, the rest of the global financial system will be hopelessly out of balance…
